EU postpones trade talks with Australia over submarine deal row
A round of trade talks between Australia and the European Union has been postponed amid a row over Canberra's decision to scrap a multi-billion-dollar submarine deal with France in favor of a US and British deal.
Australian Trade Minister Dan Tehan confirmed on Friday that the 12th long-planned round of free trade talks between the two sides has been postponed for a month.
"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," Tehan said in a statement.
However, he declined to comment on the role the cancelled French submarine contract had played in delaying negotiations.
Miriam Garcia Ferrer, the EU commission spokesperson in charge of trade, also confirmed the decision, without giving any specific reason for the postponement.
In early September, the US, Britain, and Australia established a security alliance – dubbed AUKUS – to protect what they called their shared interests and help Australia acquire American nuclear-powered submarines.
The new security pact effectively scuttled a previous $40 billion deal between France and Australia that was signed in 2016 to supply French-designed conventional diesel-electric submarines to the Australians.
Under the new partnership, the three countries have agreed to enhance the development of joint capabilities and technology sharing, and foster deeper integration of security and defense-related science, technology, industrial bases and supply chains.
The security pact instantly drew condemnation from France which accused longtime allies Canberra and Washington of lying about the deal.
The move, which Paris called a “stab in the back", also prompted Elysee Palace to recall its ambassadors from Washington and Canberra.
European Commission President Ursula von der Leyen also took aim at the AUKUS, calling the treatment of France by the trio as “not acceptable.”
In solidarity with France, she also questioned whether the EU could strike a trade deal with Australia.
The EU launched negotiations for a trade agreement with Australia in 2018. The 12th round of talks was scheduled to take place later this month via video conference.
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