A trade stalemate often overshadowed by US tariff issues is back in the spotlight after the prime minister’s talks with Donald Trump were upended.
Anthony Albanese’s plan to meet the US president on the last day of the G7 Leaders summit in Canada’s Alberta province was scuppered when Mr Trump announced he was leaving the event early.
But the hole left by the expected US tariffs discussions in Kananaskis has been filled by a push to resurrect a long-stalled free trade agreement with the European Union.
During talks with the German Chancellor, Mr Albanese said he was “very keen on getting it done quickly” and Friedrich Merz immediately offered to help.
“Is there anything I can do to speed it up a little bit?” he said ahead of their meeting on Tuesday local time.
Mr Albanese is also scheduled to talk with EU Commission President Ursula von der Leyen and European Council President Antonio Costa.
The EU was Australia’s third-largest trading partner in 2022/23, with two-way trade valued at $106 billion.
Negotiations over the proposed free trade agreement first began in 2018 but have been held up by several points of contention.
The trading bloc was concerned by Australian producers using terms like prosecco or feta for products that did not originate from specific regions in Europe.
Meanwhile, Australia has urged the EU to drop or reduce its tariffs on all agriculture exports.
Earlier in 2025, global uncertainty driven by Mr Trump and his tariffs had revived conversations, and the US president appears to have helped spark discussions once more.
Mr Albanese was scheduled to meet with the leader of the free world on Tuesday local time, however Mr Trump on Monday revealed he would leave the G7 summit early due to the escalation situation in the Middle East.
The conversation would have been Mr Albanese’s first in-person opportunity to try negotiate a tariff exemption as Australia’s exports to the US continue to be hit with a baseline 10 per cent tariff and its steel and aluminium products face 50 per cent levies.
But a spokesperson for the prime minister said the decision was understandable given the situation between Iran and Israel.
Mr Albanese previously said he is “deeply concerned” by the situation and urged all parties to prioritise diplomacy and dialogue.
Opposition Leader Sussan Ley agreed Mr Trump’s decision to leave was reasonable, but said the government should not have “merely” relied on meeting with the president on the sidelines of the international summit.
After the Pentagon launched a review into Australia’s nuclear submarine deal with the US and UK, the prime minister had also been expected to advocate for AUKUS in his meeting with Mr Trump.
There is some hope the US would not mothball the deal after Mr Trump and UK Prime Minister Keir Starmer backed the agreement following their bilateral meeting.
Many others in attendance at the summit had also lined up chats with Mr Trump.
Mexican President Claudia Sheinbaum was also hoping to have her first face-to-face talk with Mr Trump, while Ukrainian President Volodymyr Zelenskiy and Indian Prime Minister Narendra Modi had scheduled discussions with the US president on Tuesday.
But even without the biggest star of the summit, the diplomatic show must go on.
The prime minister’s talks with other world leaders have resumed, with Mr Albanese also holding conversations with Japanese President Shigeru Ishiba and the UK prime minister.
Mr Albanese will also catch up with French President Emmanuel Macron after a planned bilateral was cancelled due to a scheduling clash.
He has already met with Canadian Prime Minister Mark Carney, South Korean President Lee Jae-myung and North Atlantic Treaty Organisation Secretary General Mark Rutte.
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