SYDNEY: France’s defense relations with Australia have recovered after their 2021 bust-up over a major submarine contract, the country’s ambassador said Sunday.
Paris expressed its “strong regrets” when Australia tore up a multibillion-dollar deal to buy a fleet of diesel-powered submarines from France, Ambassador Pierre-Andre Imbert said.
Since the 2022 election of Prime Minister Anthony Albanese, however, the defense relationship had been “restarted,” he said.
“Now, the first pillar of our cooperation is defense and security, so we have a very good level of cooperation,” the ambassador told AFP as French forces joined major military drills around Australia.
When Australia ditched the French deal, it opted instead to acquire nuclear-powered vessels in a new three-way AUKUS pact with the United States and Britain.
But a US defense official last month revealed that a review of AUKUS was underway to ensure it “aligned with the President’s America First agenda” and that the US defense industrial base was “meeting our needs.”
Under the AUKUS deal, Australia would acquire at least three Virginia class submarines from the United States within 15 years, eventually manufacturing its own subs.
The US Navy has 24 Virginia-class vessels but American shipyards are struggling to meet production targets set at two new boats each year.
Asked if France would ever consider discussing a new submarine deal with Australia if the AUKUS agreement was torpedoed by the review, the French ambassador said he was reluctant to speculate.
“I would say it’s more an issue for Australia for the moment. And of course, we are always discussing with our friends of Australia,” he said.
“But for the moment, they have chosen AUKUS,” he said. “If this changes (and) they ask, we’ll see.”
More than 30,000 military personnel from 19 nations are set to join the three-week, annual Talisman Sabre military exercises, which started Sunday across Australia and Papua New Guinea.
France says Australia defense ties repaired after submarine row
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France says Australia defense ties repaired after submarine row
- Paris expressed its “strong regrets” when Australia tore up a multibillion-dollar deal to buy a fleet of diesel-powered submarines from France
India accelerates free trade agreements against backdrop of US tariffs
- India signed a CEPA with Oman on Thursday and a CETA with the UK in July
- Delhi is also in advanced talks for trade pacts with the EU, New Zealand, Chile
NEW DELHI: India has accelerated discussions to finalize free trade agreements with several nations, as New Delhi seeks to offset the impact of steep US import tariffs and widen export destinations amid uncertainties in global trade.
India signed a Comprehensive Economic Partnership Agreement with Oman on Thursday, which allows India to export most of its goods without paying tariffs, covering 98 percent of the total value of India’s exports to the Gulf nation.
The deal comes less than five months after a multibillion-dollar trade agreement with the UK, which cut tariffs on goods from cars to alcohol, and as Indian trade negotiators are in advanced talks with New Zealand, the EU and Chile for similar partnerships.
They are part of India’s “ongoing efforts to expand its trade network and liberalize its trade,” said Anupam Manur, professor of economics at the Takshashila Institution.
“The renewed efforts to sign bilateral FTAs are partly an after-effect of New Delhi realizing the importance of diversifying trade partners, especially after India’s biggest export market, the US, levied tariff rates of up to 50 percent on India.”
Indian exporters have been hit hard by the hefty tariffs that went into effect in August.
Months of negotiations with Washington have not clarified when a trade deal to bring down the tariffs would be signed, while the levies have weighed on sectors such as textiles, auto components, metals and labor-intensive manufacturing.
The FTAs with other nations will “help partially in mitigating the effects of US tariffs,” Manur said.
In particular, Oman can “act as a gateway to other Gulf countries and even parts of Eastern Europe, Central Asia, and Africa,” and the free trade deal will most likely benefit “labor-intensive sectors in India,” he added.
The chances of concluding a deal with Washington “will prove to be difficult,” said Arun Kumar, a retired economics professor at the Jawaharlal Nehru University.
“With the US, the chances of coming to (an agreement) are a bit difficult, because they want to get our agriculture market open, which we cannot do. They want us to reduce trade with Russia. That’s also difficult for India to do,” he told Arab News.
US President Donald Trump has threatened sanctions over India’s historic ties with Moscow and its imports of Russian oil, which Washington says help fund Moscow’s ongoing war with Ukraine.
“President Trump is constantly creating new problems, like with H-1B visa and so on now. So some difficulty or the other is expected. That’s why India is trying to build relationships with other nations,” Kumar said, referring to increased vetting and delays under the Trump administration for foreign workers, who include a large number of Indian nationals.
“Substituting for the US market is going to be tough. So certainly, I think India should do what it can do in terms of promoting trade with other countries.”
India has free trade agreements with more than 10 countries, including comprehensive economic partnership agreements with South Korea, Japan, and the UAE.
It is in talks with the EU to conclude an FTA, amid new negotiations launched this year for trade agreements, including with New Zealand and Chile.
India’s approach to trade partnerships has been “totally transformed,” Commerce and Industry Minister Piyush Goyal said in a press briefing following the signing of the CEPA with Oman, which Indian officials aim to enter into force in three months.
“Now we don’t do FTAs with other developing nations; our focus is on the developed world, with whom we don’t compete,” he said. “We complement and therefore open up huge opportunities for our industry, for our manufactured goods, for our services.”
