European Union to fast-track Australia trade talks

Anthony Albanese says the breakthrough means the negotiations will recommence within months for Australia to gain access to the $24 trillion market.

Prime Minister Anthony Albanese and the President of the European Commission Ursula von der Leyen during a bilateral meeting at the NATO Leaders’ Summit in Madrid. Picture: AAP

The European Union has agreed to fast-track negotiations for an Australia-EU trade deal after talks between Anthony Albanese and EU Commissioner Ursula von der Leyen on the sidelines of the NATO summit in Madrid.

The Prime Minister said the breakthrough meant the negotiations would recommence within months for Australia to gain access to the $24 trillion market.

“It will mean that there’ll be further talks as soon as October but perhaps even sooner,” Mr Albanese said.

He said was now hopeful of seeing “real progress” in the negotiations by March, before the EU elections.

“That means holding multiple meetings, identifying what the issues are that need to be resolved, and then set about resolving them,” Mr Albanese said.

The trade talks had been stalled amid French anger over Scott Morrison’s cancellation of the $90 billion Attack-class submarine contract, and European criticism of the Coalition’s delayed path to net zero emissions.

But the roadblocks have now been removed, following Australia’s payment of $830 million in compensation to French submarine builder Naval Group, and Labor’s post-election move to formalise its more ambitious emissions cuts.

“What has provided an opportunity to break through is the Australian government’s different position on climate change,” Mr Albanese said.

“That has meant that Europe are much more willing to re-enter negotiations and to progress this agreement.”

Ahead of their formal relationship reset in Paris on Friday, Mr Albanese spoke to Emmanuel Macron at the NATO gala on Tuesday night.

He said he had “a very constructive discussion” with the French President – who branded Mr Morrison a liar over the submarine dispute – describing him as “a warm character”.

“One of the things that is clear to me is that the whole world has noticed that Australia has a different position on climate change,” Mr Albanese said.

“What that does is give Australia a seat at the global table of opportunity, and I intend to seize that opportunity.”

Spanish Prime Minister Pedro Sanchez earlier threw his support behind Australia’s bid to seal the EU trade deal.

The proposed EU-Australia free trade deal would significantly improved market access for Australian exports to the European market, with its 450 million consumers, and guarantee access for Australian services businesses.

The deal would expand two-way investment flows between Australia and the EU, deliver a more seamless business environment, and introduce new rules to cut red tape and support the digital economy and innovation.