The next round of negotiations on the planned FTA free trade agreement is not due to take place until November.
After the submarine dispute between France and Australia and the transatlantic irritation over the US-led Indo-Pacific anti-China pact, another round of trade talks between Australia and the EU has been postponed. The round of negotiations on the planned FTA free trade agreement should now take place in November, an EU representative told the AFP news agency in Canberra on Friday.
Around two weeks ago, Australia had a long-planned multi-billion dollar submarine deal with France collapsed and instead opted for US-made nuclear submarines. The decision had sparked serious diplomatic tensions between France and Australia. Paris had accused Canberra of lying and questioned its trustworthiness. The new submarine deal with the USA is part of an Indo-Pacific security pact planned by Washington with London and Canberra, which would bypass the EU.
Third largest trading partner
Australia’s Trade Minister Dan Tehan said on Friday that Australia understands France’s reaction to the submarine decision, but that ultimately each country must act in its own interest. For the coming week he announced a meeting with EU Trade Commissioner Valdis Dombrovskis in preparation for the FTA round of negotiations.
The EU is Australia’s third largest trading partner. The planned next round of trade talks should cover trade, services, investment and copyright.
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