EU, Australia trade talks halted after submarine deal controversy with France

The European Union is halting its trade talks with Australia after the country dropped its submarine deal with France for a deal with the U.S., causing high tensions among the countries. 

“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,” Australia’s Minister for Trade Dan Tehan said in a statement, Reuters reported.

Tehan would not tell the outlet what role the submarine deal played in the postponement of negotiations, but European Commission president Ursula von der Leyen did previously say they would reconsider talks due to the submarine deal fallout. 

Australia was negotiating with France to establish a submarine deal worth $40 billion, but Australia canceled the deal to go with one from the U.S. that would supply them with nuclear-powered submarines. 

France lashed out after the deal, pulling its ambassador out of the U.S. and Australia. The country said the move was a betrayal of trust. 

President Biden and French President Emmanuel Macron have since talked since the deal, and the ambassador has returned to the country. However, France is still upset over the deal, with Macron saying Europe must assert its independence from the U.S.