BRUSSELS, 03 October 2021, (TON): A long-planned round of Australia-EU free trade talks have been postponed, a European official confirmed yesterday, after fury over Canberra's decision to cancel a major French submarine contract.

"The FTA trade round has been postponed for a month until November," an EU official in Canberra told media, throwing the future of the far-reaching pact into doubt.

Australia last month abruptly cancelled a multibillion-dollar contract for 12 French submarines, opting to buy nuclear-powered US-designed vessels instead.

The decision prompted a major diplomatic spat with one of the European Union's largest members and now appears to have hit ties with the entire bloc.

France has publicly said it can no longer trust Australia's government, accusing officials of lying and questioning whether the trade agreement can go ahead.

Australian Trade Minister Dan Tehan, who was scheduled to travel to Europe for the talks, played down the decision.

He said in a statement to media "we understand the French reaction to our submarine decision but ultimately any nation must act in its national interest, which is what Australia has done.”