Turnbull said Australia should pursue opportunities to expand exporters’ access to overseas markets and argued the Liberals should support a pact whose negotiations began under his government in 2018. The agreement reached an in-principle deal in March 2026 after talks stalled in 2023.

The Albanese government estimates the agreement could add 10 billion Australian dollars a year to the economy. The Australian Chamber of Commerce and Industry says it would make 98% of Australian exports eligible for duty-free access to the EU’s market of about 450 million people. Currently, about 37% of Australian exports enter the bloc tariff-free, according to the business group.

But the proposed benefits have not persuaded many Coalition lawmakers, particularly those concerned about agriculture. The agreement would allow Australian cattle producers to export 30,600 metric tons of beef to Europe annually, up from 3,389 tons. The increase has been estimated to be worth 2 billion Australian dollars, though farming groups sought a larger quota and have pointed to more favorable terms for New Zealand lamb producers.

Nationals leader Matt Canavan said the Coalition should oppose the deal before Liberal lawmakers had formally considered it. His declaration has angered some Liberal moderates, who say the party’s internal decision-making was bypassed, while other Coalition members agree with his objections to the agreement’s terms.

Liberal supporters of the pact argue that trade access and climate action are both at stake. Senator Andrew McLachlan said the agreement was imperfect but an improvement, and welcomed its commitments connected to the Paris climate accord. Senator Paul Scarr has also cited the potential removal of tariffs on most Australian exports to Europe.

Opponents say the agricultural concessions are inadequate and object to legally binding climate commitments. Liberal MP Mary Aldred, who represents the regional Victorian seat of Monash, said she did not believe the deal was good enough for local dairy and beef farmers. Shadow digital economy minister Aaron Violi said free trade agreements should serve the national interest, adding that farmers were not seeing that in this pact.

The agreement must pass through Australia’s parliamentary process. Labor has enough votes to carry it in the House of Representatives but is nine votes short of a Senate majority. A parliamentary treaty committee will review the agreement before a vote, and the government may need support from the Coalition, the Greens or crossbench lawmakers. The Greens have not announced their position.

The treaty’s fate will test whether the Liberals prioritize their traditional support for free trade or align with Coalition partners and agricultural groups seeking better terms. Business groups are pressing lawmakers to approve the pact, while critics say the government should have secured stronger protections for farmers before bringing it forward.