Why the defence deal among US, Australia and UK has irked France

September 21, 2021

Syllabus: General Studies Paper2

Context:

A defence deal among Australia, the United States and the United Kingdom that seeks to check China in the Pacific has enraged France, which has lost a lucrative submarine contract with Australia.

Background

Australia had initially wanted conventionally powered submarines, and they signed a contract with France in 2016.
But the security situation in the region has since deteriorated significantly in terms of the threat from China.
There has been a rethink in Canberra along the lines of, “Look, to be able to deal effectively with the expansion of Chinese naval power and China’s bullying of Australia, we will need more powerful submarines.”
- Nuclear-powered submarines are far more powerful than conventionally powered ones, they are more stealthy, they have a far longer range, and they can operate for longer periods under water.
- And to take on the challenge from the Chinese, who are building submarines and ships in such large numbers, there is no option but to invest in better technology.

AUKUS Alliance (Trilateral Defence agreement)

Under the AUKUS alliance, the three nations have agreed to enhance the development of joint capabilities and technology sharing, foster deeper integration of security and defence-related science, technology, industrial bases and supply chains.
Under the first major initiative of AUKUS, Australia would build a fleet of nuclear-powered submarines with the help of the US and the UK, a capability aimed at promoting stability in the Indo-Pacific region.
Rationale behind the formation of this alliance:In recent years, Beijing has been accused of raising tensions in disputed territories such as the South China Sea.
- Western nations have been wary of China’s infrastructure investment on Pacific islands, and have also criticised China’s trade sanctions against countries like Australia.

Concerns of France

It was a large deal, worth about AUD 90 billion, or USD 66 billion. It was billed as the “contract of the century” in France, and it was very important for the French naval industry and French presence.
A part of the French complaint concerns the business side of the deal and the money that has been lost, so there will likely be some legal recourse, a demand for compensation, etc.
But the signing of the contract was preceded and followed by an intensive political engagement between Paris and Canberra, and there was a sense that the countries could be strategic partners in the Indo-Pacific, with shared objectives, working together.
The cancellation of the deal shattered this larger framework.

Implications for India

The French have cancelled a trilateral dialogue meeting of foreign ministers that was supposed to take place in New York on the side-lines of the UN General Assembly. In the near term, there is a setback.
But India’s relationships with the US, UK, and Australia have improved dramatically over the last five years.
France too, has been very important for India, and there is great trust in France in New Delhi today. A quarrel among its friends is uncomfortable for India.
To deal with this situation, India can step up its own security and defence engagement with France.
- For example, India is planning to buy more submarines — and there is the argument that it is better to have nuclear submarines rather than conventional ones because India has the same problem as Australia with regard to the Chinese navy showing up close.
France could be a partner here — because it is already a resident power in the Indian Ocean, and India has an interest and stake in keeping it there.
At the same time, India is happy to be a part of the Quad, and to work with the Americans, British, and Australians.
The submarine question could become an important opening for India and France to start taking a fresh look at more things they can do together in the Indian Ocean.

Conclusion

There is no doubt that the objectives of France are in a sense the same as those of India, Australia, the US, or UK. But there is a sense of pride, a sense of betrayal, and the loss of the contract. These are serious setbacks for the French.
But the French are also realists, they will come back, and that’s where India can play an important role in reaching out to them and helping them stay engaged in the Indo-Pacific, while strengthening its own partnership.

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