The dispute between France and Australia over the $ 50 billion submarine purchase is widening and may even jeopardize the conclusion of a free trade agreement between the European Union (EU) and Australia.
Australia had signed a $ 50 billion contract with a French company for the production and supply of 12 submarines five years ago. They were designed to run on electricity and diesel. Now Australia has suddenly changed its mind and concluded an agreement with the United States and the United Kingdom, which will help it get to the eight US – made submarines, which will be nuclear submarines.
France has recounted, the French Minister of Defense has canceled a meeting with the British Minister of Defense and the French even recalled their ambassador from the United Stateswhich is a serious step. The recalled ambassador claims that the French knew nothing about the deal and believes that the United States has acted behind Australia and the British.
“When the defense and foreign ministers of both countries (Australia and France) recently met, not only were we unaware of Australia’s new course, but even more so, we once again praised the 2016 agreement we signed between Australia and France,” says Philip. Etienne, French Ambassador to the United States.
French Foreign Minister Jean-Yves Ledria has even been harsher in accusing the United States and Australia of hypocrisy and lies. France claims that its allies did not consult them Australia saysthat it has been clearly expressing its concerns about the treaty to Paris for several months.
This situation also threatens the trade agreement between the EU and Australia. 11 rounds of negotiations have already taken place and a plan was reached to reach a final agreement later this year. But now it is unlikely to be possible, as the French are likely to try to thwart it, saying that trust between the two sides has been shattered.
The influential Politico points out that France has traditionally opposed trade agreements with large exporters of agricultural products, as has Australia. The agreement would facilitate access to the European market for Australian cattle and dairy producers. Sweden, Ireland, the Netherlands, which are actively advocating free trade, certainly do not like this attitude of France.
According to EU forecasts, Australia’s submarine deal with France is worth 10 times more than the EU-Australia trade agreement brought to Europe over the next 10 years.
Meanwhile, the European Union’s foreign ministers have decided to discuss the dispute over Australia’s withdrawal from the submarine purchase agreement with France in the margins of the UN General Assembly in New York. This will be the first opportunity for ministers to discuss together not only the dispute itself, but also the implications of the defense partnership established by the United States, Australia and the United Kingdom.
The European Union’s partners have so far not publicly expressed strong support for France. However, this issue is likely to spark a European debate on ‘strategic autonomy’, or the French-led call for the development of separate European Union defense and industrial capabilities.
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