BRUSSELS: The European Union and Australia have failed to conclude talks on a planned free trade agreement, a European Commission spokesperson said on Tuesday.

The EU and Australia opened negotiations in 2018 and had hoped to conclude talks this week. However, differences remained, particularly over the degree to which the EU will open its markets to Australian farm products, notably beef.

“We regret it was not possible to conclude our talks with Australia this week. We made progress but more work is required to address key outstanding issues,” the spokesperson said.

Both sides are looking to diversify trade, the EU in particular following the aftermath of Russia’s invasion of Ukraine and Australia after major trading partner China imposed blocks on a raft of Australian farm products in a 2020 political dispute.

An agreement could also help the EU in its search for critical raw materials for its green and digital transition and reduce its reliance on China. Australia is the world’s largest producer of lithium.

Negotiations are also continuing over greater EU access to Australian energy and raw material products, as well as services.