Australia expects to conclude a Free Trade Agreement (FTA) with the European Union (EU) by December 2021.
Minister for Trade, Tourism, and Investment, Dan Tehan, who is currently in Italy for the G20 Summit, told Reuters that he is not concerned about delays in trade talks with the Union and reiterated that an FTA between the bloc and Australia would benefit both sides. In this regard, Tehan had earlier said, “The EU will use it as a way to strengthen its engagement with the Indo-Pacific because they realise that the region carries the economic weight of the world.”
When questioned about the final date for reaching the agreement, Tehan said, “I suggest it's likely the end-game will take some time, and we'll be looking towards the end of next year to conclude negotiations.” Additionally, he downplayed the damage to the EU-Australia relationship due to AUKUS and noted the constructive discussions with the ministers of seven EU countries at the Organisation of Economic Co-operation and Development in Paris.
Tehan’s statement comes after the EU postponed the latest rounds of negotiations, which were due to start on October 12 to November, in solidarity with France over its dispute with Australia. Both sides had launched negotiations for an FTA on June 18, 2018. The EU is Australia’s second-largest trading partner and source of foreign investment. Significant areas of negotiations include the opening of markets to goods, services, and investments.
France’s dispute with Australia involves the new military partnership, AUKUS, announced by the United States (US), the United Kingdom, and Australia. The partnership allows Australia to build nuclear-powered submarines and counter China’s growing influence in the Indo-Pacific.
However, for this partnership, Australia abandoned a multi-billion submarine contract with France, infuriating the latter. France called the partnership “a stab in the back” and accused the US and Australia of blinding Europe. Subsequently, France recalled its ambassadors from Australia and the US and cancelled scheduled meetings with Australian and British officials. Moreover, France asked the EU to reconsider its trade deal with Australia, citing a loss of trust. However, last week, France agreed to send its ambassador back to Australia to redefine bilateral relations.
Over France’s anger with Australia and refusal to accept the invitation for talks, Tehan said, “The most important thing is that we sit down so Australia can fully explain the decision we took because it was in our national interest.” Tehan expects France to come around, as Australia shares a strong relationship built on a commitment to the rule of law, democracy, economic openness, and human rights with the EU.
Australia Hopes to Finalise Free Trade Agreement With EU by Dec 2022
Australia’s Minister for Trade, Tourism, and Investment Dan Tehan expects to finalise a Free Trade Agreement with the European Union by the end of next year.
October 11, 2021
SOURCE: EUROPEAN COUNCIL