AFGC calls on government to protect food makers from EU FTA demands

A controversial European Union (EU) free trade agreement has placed Australian food manufacturers under threat as it moves to ban local companies from using common names such as “feta”, “parmesan”, “balsamic” and “kransky” on products.

As a condition of a Free Trade Agreement with Australia, the EU wants Australian manufacturers to stop using common terms for food products, even when they have been in production for decades.

Local food and grocery manufacturers have been under pressure from rising costs and are yet to recover from the impacts of the COVID-19 pandemic. The EU Geographical Indications (EU GIs) demand could strip up to $2.9 billion from the local industry and impact around 3700 locally made products currently on supermarket shelves.

Tanya Barden, AFGC CEO, said although local food and grocery manufacturers support free trade, it is not worth the cost of forfeiting these product names.

Barden called for the federal government to ensure the future of the Australian food industry is not affected by the EU’s demands and the precedent they set for other FTA negotiations.

“Enforcement of EU GIs would cripple many businesses as they struggle to rebuild from the COVID-19 pandemic and it would jeopardise regional jobs.”

EU negotiators have made a list of 166 GIs for use only by manufacturers in those European localities, which is a central point of these FTA negotiations. On top of this, there is a lack of clarity over how the translations of the names in the list would be interpreted. For example, the term “parmigiano” is on the list, but it is rarely used. Instead, the translation of it, “parmesan” is widely used by cheesemakers and other food manufacturers.

Barden said the improved access to the EU market would not be enough compensation for Australian food manufacturers if GIs were enforced.

“Trading away the rights of Australian manufacturers to use these everyday names would mean a free trade agreement that risks hammering regional Australian communities, where 40% of food manufacturers are based, and disadvantaging Australian consumers, with no perceived benefit for a vital domestic industry,” she said.

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