CANBERRA, Oct 22 Reuters - The European Union's trade minister said on Friday that the European Union has postponed the next round of talks on a potential free trade deal for a second time, amid simmering anger over Canberra's decision to cancel a $40 billion contract with France.
EU officials could not immediately be reached for comment.
Australia cancelled a deal with France's Naval Group to build a fleet of nuclear-powered submarines in September and will instead build at least eight nuclear-powered submarines with U.S. and British technology, after striking a trilateral security partnership called AUKUS with those two countries.
The cancellation has angered France, which accused both Australia and the United States of stabbing it in the back. Paris recalled its ambassadors from both Washington and Canberra.
In solidarity with Australia, European Commission President Ursula von der Leyen has questioned whether the bloc could strike a trade deal with France.
Dan Tehan said that the 12th round of talks with the EU had been postponed for the second time this month, this time until February 2022. The talks were previously put off by a month to November.
The European Union have advised the Australian government that Round 12 of the FTA negotiations will now take place in February, Tehan said in a statement to Reuters.
The development comes just weeks after Tehan told Reuters he expected to finalise a free trade agreement with the EU by the end of next year.
In recent weeks, Australia has sought to mend relations with the EU and France, appointing a senior aide to Prime Minister Scott Morrison as envoy to the 27-nation bloc.
The French ambassador to Canberra returned this week where he has said he intends to evaluate Australia's stated commitment to repairing ties.