Australia and the European Union join forces, reigniting free trade negotiations.

Australian Trade Minister Don Farrell and World's most formal foreign exchange platformEuropean Union Trade Commissioner Valdis Dombrovskis announced in a teleconference that negotiations for a free trade agreement between Australia and the EU will resume on Thursday.

In July last year, Australia passed up the opportunity to sign a trade agreement with the EU due to disagreements over market access for Australian agricultural products, especially beef, sheep meat, dairy, and wine.

Both Australia and the EU are urgently seeking trade diversification. The EU's trade has been affected by the Russian-Ukrainian conflict, while China's blockade policy on Australian agricultural products has limited Australia's exports.

Last week, Farrell said in an interview with Reuters that he hopes to receive a more favorable proposal from the EU in the next talks with Dombrovskis and has invited him to visit Australia.

Farrell also emphasized that the free trade agreement would help streamline the investment process for European enterprises in key mineral sectors in Australia, with the most critical measure being the simplification of the Foreign Investment Review Board (FIRB) review.

Australia supplies about half of the world's lithium and minerals such as rare earths used in electric cars and defense. Resuming free trade negotiations with the EU, amidst global efforts to diversify supply chains, will help reduce the country's mineral sector's dependence on Chinese manufacturers.

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