EU delays talks over free-trade agreement

The move, which came as Dan Tehan was en route to Europe, is thought to be retaliation for cancellation of the $90bn French subs program.

Trade Minister Dan Tehan has confirmed free-trade negotiations with the European Union have been postponed for a month. Picture: Getty Images.

The EU has postponed talks over the free-trade agreement with Australia for a month, a move believed to be retaliation for the Morrison government’s cancellation of the $90bn French-­designed submarine program.

Fears that the French government’s fury over the perceived submarine snub could threaten the EU-Australian FTA crystallised on Friday after EU officials confirmed the 12th round of ­negotiations had been shelved until November.

Currently travelling to ­Europe for the talks, Trade Minister Dan Tehan implored the EU to continue with discussions. With trade in goods and services between the two economies representing almost $58bn and $41bn respectively, he underlined the benefits for both parties in the finalisation of the deal.

“A free-trade agreement is in the interests of Australia and the European Union and will strengthen our relationship that is built on a shared commitment to democracy, human rights, the rule of law and economic openness,” Mr Tehan said on Friday.

Despite the delay Mr Tehan said he would meet EU counterpart Valdis Dombrovskis next week to discuss the negotiations and build on the progress made in the earlier rounds.

“Building on the substantial progress made in rounds 10 and 11, we will continue preparing for the 12th round of negotiations and working towards concluding a free-trade agreement that is in the interests of both Australia and the EU,” he said.

The EU has not released an explanation for its decision on the delay.