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AsiaAustralasia

Aukus fallout: EU-Australia trade talks postponed as submarine row rumbles on

  • Paris has accused Canberra of lying after it cancelled a French submarine contract and questioned whether the trade agreement can go ahead
  • Trade Minister Dan Tehan played down the dispute, saying Australia will work towards concluding the deal

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Australian Prime Minister Scott Morrison. Photo: AP
Agence France-Presse
A long-planned round of Australia-EU free-trade talks have been postponed, a European official confirmed on Friday, after fury over Canberra’s decision to cancel a major French submarine contract.

“The FTA trade round has been postponed for a month until November,” an EU official in Canberra said, throwing the future of the far-reaching pact into doubt.

Australia last month abruptly cancelled a multibillion-dollar contract for 12 French submarines, opting to buy nuclear-powered US-designed vessels instead after striking a security pact with Washington and London dubbed Aukus.
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The decision prompted a major diplomatic spat with one of the European Union’s largest members and now appears to have hit ties with the entire bloc.

France has publicly said it can no longer trust Australia’s government, accusing officials of lying and questioning whether the trade agreement can go ahead.
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