Will Australia’s nuclear submarine UK, US deal impact agriculture trade ties?

A British-American submarine deal has torpedoed Australia’s pre-existing French contract. Are agriculture’s trade ties with France and China now at risk?

French Foreign Minister Jean-Yves Le Drian earlier this year. Photo: AFP

A British-American submarine deal has torpedoed a pre-existing French contract — with question marks over how the move impacts Australia’s trade ties with France and China.

Overnight, American president Joe Biden announced the US will share secret nuclear technology to help Australia in the switch to nuclear-powered boats.

The new partnership spells the end of the Australian government’s $90 billion project for French-designed submarines to be built in Adelaide.

The end of the France-Australia deal comes as Canberra is in the middle of negotiating a free trade deal with the European Union.

France’s foreign affairs Minister Jean-Yves Le Drian said the decision betrayed “the letter and spirit” of co-operation between the two countries.

“The American choice which leads to the removal of an ally and a European partner such as France from a structuring partnership with Australia, at a time when we are facing unprecedented challenges in the Indo-Pacific region,” he said.

Federal Agriculture Minister David Littleproud has been contacted for comment.

Australia’s most significant agricultural export to France for the past decade has been grain.

According to the Department of Foreign Affairs and Trade, Australia’s two-way goods and services trade with France was valued at A$9.9 billion, making Paris the 17th largest trading partner with Canberra.