Tony Abbott says the free trade deal with the EU “just isn’t worth it” because of the bloc’s attempt to impose “bulls..t” climate regulations on its trading partners.
The former prime minister strongly backed the Coalition’s opposition to supporting the deal, which the Federal Labor Government struck as a direct reaction to Donald Trump’s tariff war.
On the day that Mr Trump unveiled his so-called “Liberation Day” tariffs, which he imposed on allied countries, including Australia, the trade ministers of Australia and the EU restarted negotiations, which Labor walked away from in 2023, citing poor access for agriculture.
A deal was unveiled this year in March, when EU Commission President Ursula von der Leyen became the first woman world leader to address Australia’s Parliament, citing Europe’s changed nature as a result of the “brutal, harsh and unforgiving” new geopolitical climate.
But the Opposition was unimpressed. Nationals leader Matt Canavan has led opposition to the deal, complaining about a clause that protects each other’s commitments to the Paris climate agreement. And he says it does not allow enough agricultural goods into the EU’s common market.
“We don’t support this deal in its current form,” Senator Canavan told the ABC’s Insiders at the weekend.
Speaking to The Nightly in an exclusive interview in London, Mr Abbott, who is Federal Liberal Party president, backed the position.
“Well, it’s not a trade deal, it’s a climate deal; of course we shouldn’t sign it,” he said.
“When the European Commission President spoke to our parliament, that was the main theme of her speech: that this was the first-ever trade deal that had climate policy at its heart.
“And I think it’s very foolish of any Australian government to sign up for a trade deal which substantially restricts our freedom of action.
“This is the problem with anything to do with the EU; it’s not really about freer trade, it’s about trying to impose the same bullsh..t restrictions that the EU has on others.
“So that’s why personally I was never in favour of a trade deal with the EU and took no steps to further that. Trying to deal with the EU just isn’t worth it, given their preoccupations with climate, labour regulation, technology regulation. Why sign up to sclerosis because that’s what you’re doing when you deal with the EU?”
Mr Abbott signed multiple free trade deals when prime minister and his former trade minister Andrew Robb told The Nightly that the EU deal should be passed, once the climate provisions are clarified.
Mr Abbott signed Australia up to the Paris climate Agreement in 2015 but said he agreed to that because it was not legally enforceable. The Coalition does not support withdrawing from the Paris Agreement, which allows countries to set their carbon reduction targets through their domestic regulations.
Business groups have strongly backed the deal and urged the Parliament to pass it.
David Alexander from the Australian Chamber of Commerce, which is the largest organisation representing businesses, said the private sector supported the Australia-EU Free Trade Agreement and called on political leaders to support it.
“Business wants to see this deal implemented. It delivers substantial market access for Australian exporters across a very broad range of sectors, with export gains growing over time,” he said.
“We urge all parties to support the EU-FTA for its capacity to deliver great trade benefits to Australia.
“No deal is perfect, but where there are concerns, we encourage political leaders to work constructively with industry to address them, so this agreement can proceed with broadest possible support.”
But Mr Abbott played down the public enthusiasm from the private sector.
“Even the industries that supposedly benefit from this deal, I’m pretty sceptical about, and not all of them are in favour of it,” he said.
As revealed exclusively by The Nightly, Trade Minister Don Farrell last week warned the Coalition of the political consequences of opposing freer trade, pointing to the shellacking American voters gave the Republicans, after the party failed to stop President Trump from imposing tariffs that have sent up the cost of goods.
Mr Abbott rejected any similarity. “I think that’s he’s drawing the longest possible bow, I think he’s clutching at straws,” he said.
But he agreed that Mr Trump’s unwarranted tariffs on friendly nations such as Canada and Australia were partly to blame for the “serious rebuff” voters gave the Republicans.
He said voters had reacted more to Mr Trump’s methods than his actual policies.
“But as usual with Trump, he’s offended and alienated a whole lot of people who I don’t think he needed to, starting with Canada; I mean, tariffs on Canada were crazy,” he said.
“Free trade with your friends is fantastic but free trade with your enemies can end up empowering the wrong people and that’s precisely what happened with China. I can absolutely understand exclusionary tariffs on China, but why Canada and why countries like Australia?”
The architect of Australia’s asylum seeker boat turnbacks described the ICE raids whereby suspected illegal migrants were rounded up by federal agents in broad daylight as “really harsh”.
“I thought Trump 2.0 would be more measured, but instead we got Trump unleashed, and while the border control has been impressive, the campaign against the illegals actually present has been at times really harsh,” he said.
“I suspect historians will judge him to have been more effective in his first term than his second term.”
He also doubted Mr Trump had the will and the way to end the war in Iran.
“I’m personally all in favour of regime change in Iran, and I admire the fact that Trump is the first President in half a century to take really decisive action against Iran, but you can’t start a war without knowing how to finish it, and it’s far from clear at this point in time that he does know how to finish it, or that he’s prepared to see it through.”
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