France has been trying to delay talks on a possible European Union (EU) trade agreement with Australia, which appears to be revenge for the failed French submarine contract. The conflict stems from the AUKUS deal in which Australia chose the UK and the US to purchase new submarines after negotiating a similar settlement with France.
A U-Turn by Australia
The previous deal to order 12 attack-class French submarines was worth $90 billion (Australian dollars), or about €58 billion. However, the French government felt blindsided by the public announcement that Australia intended to cancel that agreement in favor of AUKUS. This novel settlement revolves around the scheduled delivery of eight nuclear-powered submarines between 2030 and 2040. With an outburst of anger, France recalled its ambassadors from Canberra and Washington DC.
AUKUS Making Waves
The AUKUS deal is controversial for many reasons, especially with France and China. The Asian country seems to be more concerned about the submarine agreement that aims to limit its bullishness in the Pacific. In particular, Chinese President Xi Jinping has become increasingly aggressive and assertive in the country’s territorial claims. The AUKUS deal is designed to show a unified front of the UK, US, and Australia in their resistance to any possible Chinese aggression in the region.
However, the deal might undermine the unity of Western nations by leaving France and, potentially, the EU out of it. Furthermore, AUKUS comes amid heightened tensions between the UK and France, and other EU nations. As the UK pursues new trade deals to replace those they had as part of the EU, many EU nations are worried about the country undermining their political and economic interests. On the other hand, how much other EU members are committed to siding with France to delay AUKUS or any possible broader free trade agreement with Australia remains unknown.
Besides the drama around AUKUS, France is looking to suspend all EU talks on pending trade deals until April 2022, after the French presidential election. The election, which includes high-profile candidates who have expressed Euro-skepticism, could further muddy the waters. How far the union is willing to indulge France on this issue is unclear at the moment.
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