G7 delegates from the EU and Australia failed to conclude negotiations for a free trade agreement due to persistent disagreements over access to the agricultural market, as reported by Euractiv.

"Unfortunately, we haven't been able to make progress," said Australian Minister for Trade Don Farrell in a video statement on Sunday.

A spokesperson for the European Commission expressed regret over the "lack of progress during the talks in Osaka," with both EU Trade Commissioner Valdis Dombrovskis and Agriculture Commissioner Janusz Wojciechowski in attendance.

"There was optimism that an agreement was at hand," the Commission spokesperson stated, accusing Australian negotiators of backtracking on prior progress. "The Australian side reintroduced agricultural demands that didn't reflect the recent negotiations and progress made among senior officials." The Australian government did not comment on these accusations.

Negotiations for the free trade agreement began in 2018 and were interrupted in 2021 after Australia abandoned France in favor of the United States and the United Kingdom for a submarine deal.

In July, when a trade agreement appeared very close, Trade Minister Farrell withdrew from negotiations in Brussels, as he was dissatisfied with the offers for access to the European market, arguing that he needed to return to Australia to consult with the rest of the government.

While EU officials expressed surprise at this behavior, technical-level negotiations continued.

The main remaining issue is access to the agricultural market. Australia seeks better market access for its sheep and cattle producers, which the EU is reluctant to grant, with countries like France and Ireland opposing such access.

Agricultural lobbies from Australia and Europe are heavily involved in the negotiations and are exerting pressure on their decision-makers.

The EU Commission aims to reach an agreement before the end of the year, as the mid-2024 EU elections could change personnel and priorities. The consequences of Sunday's failure to reach an agreement for the future of the Australia-European Union relationship are currently unclear.

Ahead of the meeting, Farrell said that failing to reach an agreement would mean negotiations would have to be put on hold for a period. "From this point on, if we don't have an agreement, the Europeans go into their electoral cycle for next year's elections, and I think we'll have missed the chance for two, maybe three years to come back and resolve this," he said in a podcast interview on October 25.

In conclusion, the Trade Minister stated, "Negotiations will continue, and I hope that one day we'll be able to sign an agreement that benefits Australia and our European friends." The Commission's spokesperson said, "The European Commission is prepared to continue negotiations."