Australia to have another ‘crack’ at Indian trade deal
Australia will seek to expand its trade agreement with India as countries seek to diversify relations amid global uncertainty.
Trade Minister Don Farrell said the government would renegotiate the Australia-India Comprehensive Economic Cooperation Agreement.
“We are going to have another rift in India in the next few weeks,” he told the National Press Club on Monday.
An existing trade agreement with the 1.4 billion-strong country goes into effect in December 2022.
This agreement led to the removal of tariffs on more than 85 percent of Australian goods, estimated to be worth more than $12 billion each year.
Since then, trade with India has increased by 17 percent.
Raising the government’s free trade agreement with the European Union, Senator Farrell said he was disappointed by criticism from red meat producers who suggested the agreement fell short of providing a significant increase in market access.
“We’ve built a really good relationship with the Europeans,” he said.
“There was an element of mistrust when we rejected the deal twice, but I think that has now been accepted and they (the Europeans) are satisfied that we are reliable trading partners.”
The deal allows Australia access to 30,600 tonnes of new beef per year, an eight-fold increase on Australia’s previously guaranteed access.
The trade minister said he hoped the agreement would be ratified by the end of 2026.
“Given the enthusiasm at senior levels from both Australia and Europe, I would not rule out the possibility of us completing this deal by the end of the year,” he said.
“With the UAE agreement, we managed to do this in less than 12 months.
“I hope this sets a template for what we can do with Europeans, because the sooner we can get all our products to Europe, the better.”
Asked whether Labor was concerned that the Trump administration’s tariffs could entrench the way the US does business, Senator Farrell said revenue from taxes on imports might be too attractive for any future American government.
“I’m afraid Democrats might say: We can’t give up trillions of dollars worth of extra (money),” he said.
