The free trade agreement that was expected to be in place before the end the year is now compromised. Australia is the third-largest trading partner of the European Union.
The consequences of Australia’s decision not to cancel a major contract with French submarine builders are severe. Long-planned negotiations between Australia and Europe for a new free trade arrangement (FTA), have been delayed. until November “,On Friday, a European official stated the following:Is October. This announcement casts doubts on the future viability of this broad pact.
The Australian Trade Minister Dan Tehan attempted to downplay the decision. “We are sensitive to France’s reaction, but any nation must act in their national interest. Australia has done this.”, did he declare.
Dan Tehan indicated that he would meet Valdis Dombrovskis the EU Trade Commissioner next week.
Last month, Australia without warning severed the contract to purchase twelve French conventional-propelled submarines for a value of A $ 90 billion (€ 55 billion), choosing to buy from the instead of nuclear-powered ships of American design.
France has declared it cannot trust the Australian government and accused officials of lying.
The French government has summoned its diplomats from Canberra and Washington to protest the behaviour of allies.
The French Ambassador returned to the United States Wednesday. However, there are no indications that Jean-Pierre Thebault, Australian Ambassador, will be returning.
Malcolm Turnbull, former Prime Minister of Australia, said this week that he had appointed his successor “Deliberately deceived.”France will abandon the agreement.
Prime Minister Scott Morrison “Did not act in good faith. He deliberately deceived France ”Malcolm Turnbull stated this to reporters in Canberra. You can add:
Australia is third in trade with the EU. The trade in goods and services between the two economies was worth 36 billion euro each, while 26 billion euros were spent on services.
The next round of negotiations would cover areas such as investment, trade, and intellectual property rights.
Trade negotiations began in 2018, and negotiators were hoping to reach a final deal before the end of 2018. This timeline is now optimistic, with Australia and France heading for election in early 2022.