What Australia’s bust up with France means for Queensland and European Union free trade

Billions of dollars in trade between Queensland and Europe will come under pressure as fears mount a scorned France will seek to scuttle or delay the EU free trade deal.

Queensland’s more than $2 billion beef, sheep, metal and mineral trade with Europe will come under pressure as fears continue that a scorned France will seek to scuttle or delay the EU free trade deal.

Trade Minister Dan Tehan has played down suggestions the trade deal is under threat after Australia dumped a $90 billion French submarine contract in favour of a US nuclear vessel deal as part of the AUKUS security partnership.

The trade deal was hoped to wipe 12 per cent tariffs on metals and minerals as well as impositions on beef and sheep meat, which are some of the sunshine state’s top exports to Europe.

Trade Minister Dan Tehan. Picture: NCA NewsWire / Martin Ollman

Queensland’s trade to the European Union includes $37 million in beef, $145 million in various metal ores and concentrates, and about $1.9 billion in coal.

This could grow if trade barriers are dropped as part of the proposed free trade agreement, which is entering its 12 round of talks.

France’s European Affairs Minister Clement Beaune has said after the submarine announcement he did not see “how we can trust our Australian partners”, though European Commission foreign affairs chief Josep Borrell described it as comparing “apples and pears”.

France’s ambassador to Australia Jean-Pierre Thebault, who has been recalled to Paris in protest, denied there were any attempts to lobby the EU against the deal, but pointed out Australia had much to gain from it.

“The EU is the largest single, wealthiest market where Australia is not present,” he told the ABC.

France's Ambassador to Australia, Jean-Pierre Thebault outside the French Embassy in Canberra. Picture: Newswire/Gary Ramage

Mr Tehan will be in France from early October as part of the OECD ministerial meeting as well as the 12th round of EU trade talks.

He said the negotiations remained business as usual, with the EU eager to foothold into the Indo-Pacific “where the economic weight of the world lies”.

“France exports more to Australia than Australia exports to France. It’s very much in the interests of both countries, for consumers, for businesses and overall the economic relationship benefits both nations,” Mr Tehan said.

French President Emmanuel Macron is facing an election in April next year.

Australia signed a multi-billion free trade agreement with the UK in June this year, following its exit from the EU.

Tariffs, or import taxes, on billions of dollars of Queensland exports, including beef, sugar, cheese and car parts, will be wiped to zero over the next 15 years.