Australia is looking to deepen trading ties with India markets. Photo: stock
Australia is looking to diversify its trading base by boosting trading ties with India against a background of fresh US trade tariffs.
Trade Minister Don Farrell recently announced an economic roadmap to boost two-way investment between the countries especially in four sectors: clean energy, education and skills, agribusiness and trade.
It also identified nearly 50 specific fields such as defence industries, sports, culture, space, and technology.
“The potential of our relationship with India is almost unmatched, opening a fast growing market of over 1.4 billion people,” Farrell says.
“The roadmap, the result of significant consultation with businesses and the community, offers a blueprint for Australian businesses to seize this extraordinary opportunity.”
He says a free trade agreement with India is on track to save exporters around $2 billion in tariffs by the end of 2025.
Canberra will spend $16m on helping Australian firms find new markets in India with a $4m grant program to boost cultural and social ties.
The need to diversify trading links was highlighted by Prime Minister Anthony Albanese and Foreign Minister Penny Wong when launching the roadmap.
“India is an essential partner as we diversify our trade links to boost prosperity for all Australians,” Albanese says.
“This roadmap is critical to helping us fully realise our potential with India, which will be a boon to Australia’s economy, our businesses and jobs, and our prosperity.”
Senator Wong says “growing Australia’s economic security and diversifying our partnerships is … central to our national interest”.
She says stronger economic ties with India will create more jobs and help create a more stable and prosperous Indo-Pacific region.
AGRIBUSINESS VISIT
Last week (Friday), Australia hosted a visit by Indian officials for the sixth meeting of the India-Australia Joint Working Group (JWG) on agriculture.
Australia’s Deputy Secretary for Agricultural Trade and Regulation, Tina Hutchison, says the JWG is the cornerstone of their agribusiness ties with India.
“The relationship between our nations is growing and our economies are highly favourable,” she says.
“Increased market liberalisation in India and seasonal complementarity of produce means we can support India’s objectives for food security and help it meet demand from its growing consumer class.”
Indian officials toured agri-tech and other sites and met with Australian industry groups on future prospects.
The Australian government says that under a two-year trade deal with India, agricultural exports to India increased 88 per cent while imports increased by 35 per cent.
US TARIFFS
The push comes amid new fears of a North American trade war after US President Donald Trump says a 25 per cent tariff on imports from Mexico and Canada will take effect from Tuesday (Wednesday Australian time).
Tariffs on Chinese imports are also due to double to 20 per cent.
Canada is ready to react with tariffs of its own, overseas media reports say.
Australia is facing 25 per cent tariffs on its aluminium and steel exports to the US which is due to take effect from March 12.
