France-Australia Defense Ties Rebound After Submarine Deal Fallout

France’s defense relationship with Australia has significantly improved following the collapse of a major submarine deal in 2021, according to the French ambassador to Australia, Pierre-André Imbert.

Speaking as French forces joined the large-scale Talisman Sabre military exercises in the region, Imbert said ties had been “restarted” since the 2022 election of Australian Prime Minister Anthony Albanese. “Now, the first pillar of our cooperation is defense and security, so we have a very good level of cooperation,” he told AFP.

The diplomatic rift began in 2021 when Australia cancelled a multibillion-dollar agreement to purchase a fleet of diesel-powered submarines from France, choosing instead to enter a new security pact—AUKUS—with the United States and the United Kingdom. That deal would see Australia acquire at least three US-built, nuclear-powered Virginia-class submarines and eventually develop its own nuclear fleet.

France responded at the time with strong condemnation and temporarily recalled its ambassadors from both Canberra and Washington. The French government described the decision as a “stab in the back,” sparking a major diplomatic crisis.

However, Imbert now says the relationship has been repaired. “We had strong regrets about the decision made by the previous Australian government,” he said, “but we are looking forward now.”

The AUKUS agreement, however, is facing fresh uncertainty. A US defense official recently confirmed a review of the pact is underway to ensure it aligns with President Donald Trump’s “America First” agenda. The review is also examining whether the US industrial base can support its own needs while supplying submarines to allies.

With American shipyards already under pressure—struggling to meet their production target of two submarines per year—there are concerns about potential delays or changes to the AUKUS timeline. The US Navy currently operates 24 Virginia-class submarines.

When asked whether France would consider reviving its own submarine proposal if the AUKUS deal were altered or abandoned, Imbert declined to speculate. “It’s more an issue for Australia at the moment,” he said. “Of course, we are always discussing with our friends in Australia. If this changes and they ask, we’ll see.”

The comments came as more than 30,000 military personnel from 19 countries began the Talisman Sabre exercises, a three-week annual joint drill taking place across Australia and Papua New Guinea—highlighting the growing importance of defense collaboration in the Indo-Pacific region.