Quick links: United States | Major Indices | Indices Future | Real-time Commodities | Webinars | Coronavirus | Economic Calendar
20 Sept 2021
Australia to Meet With France In Hopes of Reducing Tensions Related to Submarine Deal
The Index Today
Australian Trade Minister Dan Tehan announced on Monday he will call for a meeting with France to reduce tensions related to $40 billion submarine deal.
Last week, the country said it will be ending the deal with France’s Naval Group and will instead move forward with a trilateral security partnership with the U.S and Britain to build eight nuclear-powered submarines.
The cancellation of the submarine deal infuriated French officials and has strained the relationship between both countries. France has recalled ambassadors from both countries adding to fears over Australia’s effort to establish a free trade deal with Europe. Dan Tehan reportedly said, “I will be very keen to touch base with my French counterpart while I’m in France.”
Meetings between officials from both sides have been scheduled for the 12th of October. Australian Prime Minister is currently travelling to the U.S for the upcoming Quad group meeting which includes Japan and India.
French officials have stated their disappointment of the new defense deal. China has also condemned the new deal under the trilateral pact. Relations between China and Australia have weakened in the last decade over issues such as Huawei being banned in the 5G network and Covid enquiries. As a retaliation, China has restricted imports from Australia and has terminated all communications at ministerial level.
©Photo: Sitthixay Ditthavong