The tensions between the bloc and Australia rose to newer heights after E.U. postponed trade talks with the later
In a latest development, the European Union (E.U.) has postponed the trade talks with Australia, taking the tensions with between the bloc and Australia to newer heights.
The trade talks were scheduled to be held on October 12, 2021, which have now been shifted to November 2021.
The tension between Australia and France first started when the former cancelled a U.S. $ 37 billion (U.S. $ 27.5 billion) deal with France to buy a fleet of conventional submarines. It, however, went ahead and signed the Aukus deal with United States (U.S.) and United Kingdom (U.K.). This angered Paris and they said that it’s a stab in the back.
What angered France more was the fact that it came to know about the Aukus deal only hours before the public announcement. However, the Aukus deal is described as the most important deal between the 3 nations since the Second World War. The main objective of the deal is to cater to the growing influence of China in the pacific. But France considers the Indo-Pacific region to be of key strategic and economic importance, with around 1.5 million French citizens in the area.
In solidarity with France, the President of European Commission – Ursula von der Leyen has also questioned whether the E.U. should trust Australia and strike a trade deal with them.
The Chief Spokesman of European Commission – Eric Mamer said that the decision to delay the meeting was taken by the E.U.’s executive arm. He also clarified that it is not a retaliatory move as E.U. is not in the business of punishing anybody.
The European Commission’s Spokesperson in charge of Trade – Miriam Garcia Ferrer also said that the delay in organizing the next round of talks is not the end of the deal.
Speaking on the occasion, the Minister for Trade, Australia – Dan Tehan said, “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.”
In the next round of talks, the minsters of both sides will discuss on a wide range of topics covering trade, investment and intellectual property rights. The last round of talks over a free trade deal were held in June 2021 after which the European Commission said that the negotiations had progressed in most areas of the future agreement.
Through this trade deal, Australia is looking to significantly improve market access for Australian agricultural and industrial products and reduce barriers to trade and costs through modern customs, rules of origin and trade facilitation procedures. Australia is seeking to lock in access for services exporters and create opportunities in sectors of key commercial interest such as education, finance and professional services. It is also looking to establish digital trade commitments which strike a balance between facilitating modern trade and ensuring appropriate protections in the online environment.
The deal would improve market access for Australian investment and increase investment into Australia, supporting economic growth. It will ensure transparency and regulatory frameworks provide greater certainty for investors. Also, the E.U. is Australia’s 3rd biggest trading partner, with trade in goods and services totalling almost U.S. $ 72 billion last year.
