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EU postpones trade talks with Australia amid submarine deal fallout By Reuters

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© Reuters. A general view shows the Naval Group site, the port and the skyline of the shipbuilding town of Cherbourg-en-Contentin, France, September 23, 2021. REUTERS/Stephane Mahe

Colin Packham

CANBERRA, (Reuters) – Australia’s Minister for Trade Dan Tehan stated on Friday that talks with the European Union regarding a trade agreement have been delayed. This was due to a dispute over Canberra’s cancellation of a $40 billion French deal.

Australia cancelled last month a contract with France’s Naval Group for a fleet conventional submarines. Instead, it will build eight submarines powered by nuclear technology with British and U.S. technology. This is after establishing a trilateral security partnership.

France was furious at the cancellation and accused Australia and the United States, respectively, of robbing France. Paris recalls its Ambassadors to Canberra and Washington.

Ursula von der Leyen of the European Commission, in solidarity against France, has raised concerns about whether Australia can be included in a trade deal.

Tehan declined to discuss the sub-marine deal’s role in delays negotiations, but confirmed that the 12-th round of talks set for October 12 was postponed by one month.

Tehan made the following statement to Reuters: “I will be meeting with Valdis Dombrovskis, my EU counterpart,”

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