France Backtracks, Says Aussie Sub Row Won't Stop Trade Deal

French and Australian officials said Monday that France’s anger over a canceled submarine contract will not derail negotiations on an Australia-European Union (EU) free trade deal, Rod McGuirk and Angela Charlton reported for the Associated Press (AP).

Photo Insert: France was shocked and felt slighted by the deal cut between the US and Australia, moreover because that the aforementioned was announced on short notice.

France withdrew its ambassadors to the United States and Australia after US President Joe Biden revealed last week a new tripartite alliance including Australia and Britain that would allow Australia to amass a fleet of at least eight nuclear-powered submarines.

The deal sunk a A$90 billion (US$66 billion) contract for French majority state-owned Naval Group to provide 12 conventional diesel-electric submarines for Australia. The money would have been spent over 35 years.

French Ambassador to Australia Jean-Pierre Thebault denied media reports that France was lobbying the EU not to sign the trade deal with Australia that has been under negotiation since 2018.

“At this stage, negotiations do continue and there is a strong interest ... for Australia to have a free trade agreement with the EU,” Thebault told Australian Broadcasting Corp. from Paris. Such a deal “has the potential to deliver a huge amount of benefits for Australia,” Thebault added.

Australian Trade Minister Dan Tehan said he would travel to Paris within weeks for trade negations and was “very keen to touch base with my French counterpart,” Franck Riester.

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