Colin Packham

CANBERRA (Reuters – Australia’s Trade Minister said Friday that the European Union delayed the next round for talks on a potential trade deal. The announcement came amid growing anger about Canberra’s decision not to renew a $40 billion agreement with France.

Officials from the EU could not be reached immediately for comment.

Australia has cancelled its agreement with France’s Naval Group in September to construct a fleet standard submarines. It will now build at most eight nuclear-powered submarines using British and U.S technology. This is after it formed a trilateral security alliance called AUKUS.

France has been furious about the cancellation, accusing both Australia and America of trying to stab it in the back. Paris recalls its Ambassadors to Canberra and Washington.

Ursula von der Leyen of the European Commission has expressed solidarity to France by asking if Australia can strike a trade deal.

Dan Tehan, Australian trade minister, stated that the 12th round negotiations with the EU was delayed for the second month in a row. This time, it will be held until February 2022. Prior talks were delayed for a month from November.

Tehan stated in a statement that the European Union had advised Australia’s government that Round 12 in the FTA negotiations would take place in February.

It comes only weeks after Tehan said to Reuters that he expected to sign a free-trade agreement with EU at the end of the year.

Australia is trying to improve relations with France and the EU in the last weeks by appointing Scott Morrison, the senior aide of Prime Minister Scott Morrison, as the envoy for the bloc’s 27 member nations.

This week, the French Ambassador to Australia was back in Canberra. He stated that he will evaluate Australia’s commitment to repair ties.