NATO Secretary-General Mark Rutte talks to Anthony Albanese at the summit. Photo: NATO
Australia and the European Union are to start talks on a new defence and security pact separate to any free trade agreement.
Prime Minister Anthony Albanese, European Commission President Ursula von der Leyen and European Council President Antonio Costa agreed to the talks at the G7 Leaders’ Summit in Alberta, Canada.
The Security and Defence Partnership (SDP) is seen as the first step towards Australia securing deals from the EU’s new defence spending program valued at A$1.3 trillion.
The SDP will pave the way for co-operation between EU and Australia such as defence industry, cyber and counter-terrorism but does not carry military deployment obligations.
Canada, a NATO member, is reportedly due to sign up as well as it seeks to broaden its military ties beyond the US.
“We see how deeply connected Europe’s security and the Indo-Pacific region have become” Albanese told journalists at Kananaskis, the venue for the summit.
“I very much welcome the EU’s offer for an SDP; Australia will warmly take it up and (start) work immediately.”
He points out that the SDP will “open the door” to European purchases of Australian defence weapons, systems and vehicles.
WHY AN SDP?
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- An SDP is the first required step for third countries to take part in the EU’s A$264 billion
Security Action For Europe (SAFE) loan scheme to finance defence spending by European countries. - The SAFE scheme includes a preference for 65% of all weapon system purchases to
be made in the EU or by a third-country manufacturer who has an SDP. - Another deal, allowing for that third country’s participation in SAFE, will also be required.
- The SAFE scheme is part of an A$1.4 trillion ReARM Europe plan to boost annual defence
spending up to 1.5% of GDP for up to four years. Source: EC
- An SDP is the first required step for third countries to take part in the EU’s A$264 billion
EC President Von der Leyen says that amid rising global tensions “trusted partners must stand together”.
“We’re also committed to advancing free trade negotiations because economic security matters too,” she says.
Albanese told journalists at the summit that there were still “two or three” issues holding up FTA talks, such as the EU’s offer for sheep and beef, but that progress is being made.
EC president Costa reaffirmed Australia’s status as an important partner for the EU.
“Europe’s and the Indo-Pacific’s regions are connected. Opening negotiations on an SDP opens new opportunities to further strengthen our co-operation.”
