Farmers praise Trade Minister Don Farrell for EU trade deal walk away

Negotiations broke down at the G7 meeting in Japan, after the EU refused to meet Australia's demands for great market access for its agricultural products.

"We weren't able to make progress," Trade Minister Don Farrell said.

Newly-elected National Farmers' Federation president David Jochinke applauded Senator Farrell for standing by Aussie farmers and walking away.

"It should be clear though to the EU from today's events that Minister Farrell isn't willing to throw Aussie farmers under the bus just to get the deal done," Mr Jochinke said.

"He's held firm to protect Australia's interests in the face of intense pressure from EU negotiators, and for that we're incredibly grateful.

"What was on offer would have hardwired protectionism into our trading relationship with Europe for another generation. It would have locked our farmers in at a disadvantage to competitors in New Zealand, Canada and South America."

A European Commission spokesperson said the negotiating teams had made good progress in the lead up to the meeting and were optimistic about reaching a deal.

"However, ministerial discussions in Osaka did not see the same progress...the Australian side re-tabled agricultural demands that did not reflect recent negotiations and the process between senior officials," the spokesperson said.

CaneGrowers chief executive Dan Galligan, who was in Japan with the NFF to work with trade officials, said it took guts and determination to walk away.

"We have been telling the minister for months that no deal would be better than signing a bad deal, and I thank him and his team for listening to farmers," he said.

"It's no small decision to walk away from a free trade agreement with one of the world's largest trading blocs. It takes courage and I congratulate Minister Farrell for making the tough decision; I know the nation's farmers will appreciate him taking a stand on their behalf."

Agriculture Minister Murray Watt said the deal stalled because the EU wasn't willing to make any concessions on agricultural products.

"We just didn't get the movement on the EU side that was required for this deal to be in Australia's national interest," Senator Watt said.

"I'm not sure whether it was about the impending election cycle that's coming in the EU or their farmer lobbies, but we just weren't able to see the EU increase its offer."

The free trade agreement has been in negotiations since 2018. Both sides committed to continuing to discussions, however the EU will soon enter an election cycle and it will be months before negotiations resume.