TRADE discussions between the European Union and Australia have been abruptly suspended as Australian Trade Minister Dan Tehan was in transit to continue the negotiations.
The snap move comes after French displeasure at Canberra’s decision to cancel a $90b submarine project, following the signing of the AUKUS deal with the United States and United Kingdom last month.
- Australia cancels 12 French submarines in favour of eight US or UK nuclear subs.
- France was asked to retro-fit nuclear subs with diesel/battery power.
- Australia now in trade limbo with China and European Union.
Australian Trade Minister Dan Tehan said in a statement to Reuters this week: “I will meet with my EU counterpart Valdis Dombrovskis next week to discuss the 12th negotiating round, which will now take place in November rather than October.”
“A free-trade agreement is in the interests of Australia and the European Union and will strengthen our relationship that is built on a shared commitment to democracy, human rights, the rule of law and economic openness,” he added.
TROUBLED
“We understand the French reaction to our submarine decision, but ultimately any nation must act in its national interest – which is what Australia has done.”
Last month, the Australian government cancelled the troubled multi-billion-dollar Future Submarine Program with French defence contractor Naval Group.
The original 2016 plan was for Naval to convert 12 of its Barracuda-class nuclear submarines into diesel-electric powered Attack-class submarines fitted with US weapons systems.
However, the French project has been riddled with ongoing delays and cost blowouts, with Australian Prime Minister Scott Morrison revealing $2.4 billion (US$1.7 billion) had already been sunk into the project.
However, the signing of AUKUS saw the Australians cancel the deal – which Mr Morrison said was within the federal government’s right – and instead explore the acquisition of at least eight nuclear-powered submarines from the US or UK.
French ministers reacted angrily to the deal accusing Australia and the US of “stabbing it in the back” and recalling its ambassadors from Canberra and Washington DC.
European Commission President Ursula von der Leyen also questioned whether the incident could affect a potential trade deal with Australia.
In reaction to the delayed EU-Australia trade negotiations, Euan Graham, senior fellow for Asia-Pacific Security at the International Institute for Strategic Studies, wrote on social media on October 1: “Astonishing. I’m guessing economic retaliation wasn’t in the EU Indo-Pacific policy guidelines?”
“What’s the betting this suspension was timed to enable (French President Emmanuel) Macron to lobby an incoming German government for a supportive EU position?” he added. “Will be interesting to see if Australia now fast-tracks (Australia-United Kingdom) Free Trade Agreement negotiations.”PC
Well done Brett Barra. To be fair, the French should list any bribes paid and receive a refund.
The French seem to have forgotten that they pulled out of a deal to deliver two freshly built ships to the Russian federation. That was about a decade ago and one of the ships was already finished being built and already paid for. I think that the same ship was later delivered to Spain. I actually believe that Fincantieri from the Italian area of the EU should build all of our ships and crew them as well. Those crew who decline Australian citizenship may return to Italy. By the way, unlike the French (whose boats should be painted white) due to their pepensitiy to surrender. At least with the Italians we can always seek to change to the winning side at the last moment should it become necessary. It’s a no lose situation!