Australia says trade pact would benefit EU in Indo-Pacific amid submarine deal fallout

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CANBERRA (Reuters) - An Australian-EU trade deal would be mutually beneficial and allow EU members a greater presence in the Indo-Pacific, said Australia's trade minister, as Canberra tries to repair ties with Paris after the scrapping of a $40 billion submarine deal.

Australia last week cancelled a deal with France's Naval Group to build a fleet of conventional submarines and will instead build at least eight nuclear-powered submarines with U.S. and British technology after striking a trilateral security partnership with those two countries.

In solidarity with France, EU lawmakers have publicly questioned whether a trade deal with Australia could be possible. "For us transparency and loyalty are fundamental principles in order to build stronger partnerships and stronger alliances," European Council President Charles Michel told Morrison in a bilateral meeting in New York on Tuesday.

 

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