Prime Minister Anthony Albanese says free trade negotiations with the European Union will resume in the coming months, after reaching a compromise from the European Commission president.
Key points:
- Albanese says European leaders are now much more willing to re-enter trade negotiations with Australia
- It comes after a rupture in relations with the previous government over inaction on climate change and the decision to cancel a submarine deal with France.
- Europe is Australia’s second largest trading partner, with a market of 450 million people and a GDP of more than $ 20 trillion.
Negotiations have stalled for nearly a year with Anthony Albanese blaming a diplomatic consequence with the French government and concerns over his predecessor’s position on climate change.
Albanese said Ursula von der Leyen expressed her desire to restart negotiations during a meeting on the sidelines of the NATO summit, and discussion could resume before October.
“We want to see real progress by March … and that means holding several meetings and identifying what issues need to be resolved,” Albanese said after the meeting.
“It is clearly in Australia’s interest to diversify our trade relations.
European Commission President Ursula von der Leyen says talks could resume before October. (Reuters: Yves Herman)
“What has provided an opportunity to break is the different position of the Australian government on climate change which has made Europe much more willing to renegotiate.”
Albanese said a free trade agreement would allow more European companies to set up in Australia and more Australian products to be exported.
Europe is Australia’s second largest trading partner, with a market of 450 million people and a GDP of about US $ 15 trillion (over US $ 20 trillion).
“Right now there are several barriers to our trade here in Europe and we need to make sure that with countries with similar ideas we commit to more trade for the benefit of both Europe and Australia,” Albanese said.
French President Emmanuel Macron, who called Scott Morrison a liar after canceling a $ 90 billion submarine contract, had a discussion with Albanese on Tuesday night in Madrid.
“I had a very constructive discussion … I look forward to my visit to Paris and thank President Macron for his welcome,” Albanese said.
Democracies in Asia and the Pacific are participating in the NATO summit
Albanese also attended a meeting with leaders from Japan, Korea and New Zealand, who were also invited to attend the NATO summit.
The Madrid meeting has been dominated by Russia’s invasion of Ukraine, with leaders eager to describe President Vladimir Putin’s actions as a false strategic move that has unified democratic nations.
The inclusion of the nations of Asia and the Pacific has been described by some analysts as a counterweight to China’s growing influence in the region.
“I believe that our collective presence here in Madrid at the invitation of NATO demonstrates the importance of the Indo-Pacific for global peace and security,” Albanese said at the meeting.
“Each of us is critical advocates for NATO, Europe and the United States to have a stronger and more sustained commitment to our region.
“Only by working together can partners offer a real option to the countries of the region and take tangible measures to ensure peace, stability and prosperity for the Indo-Pacific.”