Delegations have been working to finalise a deal, with one of the major sticking points being the unwillingness from the Albanese government to give ground on geographical indicators (GIs) on locally made produce such as prosecco and feta.
The GIs stop producers elsewhere in the world from using those names.
Opposition trade spokesman Kevin Hogan said prosecco and dairy products including feta, parmesan, and haloumi should be off the negotiating table.
“The (free trade agreement) with the EU will be finalised at a political level so it's up to the trade minister and the prime minister not to blink when it comes to negotiations,” he said.
“The consequences of any Labor capitulation to European negotiators on GIs is losses of hundreds of millions of dollars and thousands of jobs.
“That would (be) a disaster for our country.”
Hogan said he had met with the producers and seen the emotional and generational family investment in their products.
“There is no way their interests can be traded away,” he said.
Trade Minister Don Farrell has previously said Australia's migrant communities have an emotional attachment to cultural foods and products, and has used the country's vast supply of critical minerals as a bargaining chip in negotiations.
Senator Farrell has also said the Government would only sign a deal in Australia's national interest, and not for the sake of it.
Delegations have held more than a dozen rounds of talks, as negotiators work to seal a free trade deal by a mid-year deadline.
The European market has a gross domestic product of about $23 trillion.
AAP
