Emmanuel Macron stumbling block to Australia’s trade with Europe and NATO office in Indo-Pacific

Anthony Albanese emerged from two days of talking with various world leaders with plenty of photos, but not the prized signature he wanted – thanks to Emmanuel Macron. Find out why.

French president Emmanuel Macron has been at the centre of dual stumbling blocks for Australia at the NATO Summit in Vilnius this week: the collapse of a free trade deal with the European Union and NATO’s failed expansion into the Indo-Pacific.

Australian prime minister Anthony Albanese emerged from two days of talking with various world leaders with plenty of photo souvenirs, but not the prized signature he wanted: the EU free trade deal.

European Commission chief Ursula Von Der Leyen had also come to Vilnius expecting to complete the trade agreement with Mr Albanese, but instead has expressed “deep disappointment” to her team in Brussels that Australia has walked away.

She said: “Democracies have to stand together to deepen their friendship, their partnership but also strengthen their economic ties,’’ referring to the need for the EU to diversify supply chains.

Prime Minister Anthony Albanese (left) shakes hands with French President Emmanuel Macron on the sidelines of the NATO summit in Vilnius. Picture: Ludovic Marin/AFP

Mr Albanese told her on Wednesday morning that the free trade deal issues were “complex and required a lot of hard work”. He said, however, that Australia would continue to progress the finalisation of such an agreement.

Incredibly this week, the European Union negotiators had believed that their offer of tight quotas, and limits of imports to grass fed beef – described as ‘’derisory” by someone who has seen it – would have been sufficient for Australia to accept.

A counteroffer was just tinkering, insiders said.

Trade Minister Don Farrell said from Brussels: “Australia’s point of view was to achieve meaningful agricultural access to European markets.” He then reinforced Australia’s ace card, which was to help Europe decarbonise.

“We want to be good partners with the Europeans on critical minerals,’’ he said.

“Australia intends to be a renewable super power. We have all of the critical minerals that you are going to need to build the electric engines of the future to decarbonise our world. We want to work with the Europeans on that.”

Trade Minister Don Farrell. Picture: NCA NewsWire/Martin Ollman

EU sources say Australia should have been cognisant of the political impediments that constrain EU leaders like Mr Macron from agreeing to what Australia wants: open market access for beef, sheep meat, dairy and sugar.

With Mr Macron facing open rebellion from farmers, and the persistent thorn in his political side from Marine Le Pen, he cannot give way and allow any movement by the EU negotiators, even with Australia’s sweetener of providing easy access to valuable minerals like lithium.

European leaders are increasingly nervous and feel they have given up as much as they can regarding foreign agricultural imports in a previous deal with Canada, having seen Mark Rutte’s coalition government in The Netherland’s collapse under pressure from the populist Farmer-Citizen Movement.

Mr Macron had already scuppered the NATO plans to open an office in Japan, telling the NATO administration that they needed to focus upon their European remit, rather than interfere in the Indo-Pacific, an area that the French has considerable influence.

Xavier Chatel, Mr Macrons’ adviser on strategic affairs, said the geographic scope of the alliance was the North Atlantic and France opposed the concept of expansion on principle.

Prime Minister Anthony Albanese, Germany's Chancellor Olaf Scholz, Brigitte Macron and France's President Emmanuel Macron walk ahead of the social dinner during the NATO summit, at the Presidential Palace in Vilnius. Picture: Ludovic Marin/Pool/AFP

He said Mr Macron had “very clearly told” the NATO general secretary Jens Stoltenberg that France did not support creating a regional office in the Indo-Pacific.

When the French leader met with Mr Albanese in a tiny room 14 on the sideline of the summit, which barely accommodated the delegation teams, he appeared annoyed. He wouldn’t allow his blandest of opening remarks to be recorded, unlike other leaders.

Mr Albanese, too, was a little flustered, fiddling with his jacket. Significantly neither side gave details of their talks, apart from some cultural references to World War II commemorations.

None of the French decisions have anything to do with the cancelled $40bn Australian submarine contract, but there remains little political capital from the French side to relinquish their fierce agricultural protections, nor their influence in the Indo-Pacific, in any way, shape or form, to their own Europe-based institutions.

Originally published as Emmanuel Macron stumbling block to Australia’s trade with Europe and NATO office in Indo-Pacific