India and Australia enjoy a unique distinction of operationalising — India-Australia Economic Cooperation and Trade Agreement (#IndAusECTA) — that came into effect on December 29, 2022.
In 2020, the then Australian Prime Minister Scott John Morrison and Indian Prime Minister Narendra Modi decided to re-engage in a bilateral Comprehensive Economic Cooperation Agreement (CECA) and reaffirmed their commitment to conclude a CECA by the end of 2022. However, CECA is yet to be concluded.
As the two countries, who are also members of Quadrilateral Security Dialogue (QSD or also known as QUAD), which also has Japan and the US as its members will meet in a couple of days in Australia, expectations are that certain bilateral issues can also be resolved.
Some announcements in the area of critical minerals can also be expected.
In this backdrop, businessline caught up with the Australian High Commissioner to India Barry O’Farrell AO to know how soon CECA will be in place and what is stopping Australia from giving GI tag to Indian Basmati. Excerpts:
Everyone is looking at May 24 Quad meet. What can be expected from it?
When the QUAD members get together, it will inevitably take forward the practical way to achieve the goal of safe, secure, and peaceful India-pacific.
QUAD has been doing practical and positive work in a range of areas whether it is health security, infrastructure connectivity, climate change, and renewable energy as well as critical and emerging technologies.
But, because all the members, not only Prime Minister Modi are very focused on results, I expect this meeting will see some uptights as to India-Pacific partnership on creating awareness on what security threats are their in India-Pacific region.
We are working hard to ensure that we have that free open and sovereign India-Pacific we want.
So the meet is not only about defence or military? Green energy plays a very important role now. How much talks around climate change will happen and will it have a ripple effect?
All the countries that are members of the QUAD have signed up to the need and determination to deliver a better climate. And it is important for the countries who are members of the QUAD and seeking support from other countries in their desire for free open sovereign security in the India-Pacific.
It cannot be sovereign if countries are being threatened, their existence is being threatened by climate change.
For example, India’s International Solar Alliance–it has Australia’s strongest support with million dollar corpus contribution... Yes, climate change is big for the QUAD as it also opens up risks to the countries to prevent them from making choices that may at times lead to threats... the four countries who are members of the QUAD are all committed to a better climate.
They are working together through the QUAD to deliver across the region and also working bilaterally.
But when you talk climate you also talk coal. Today, there are certain restrictions that are being put on coal. Isn’t clean coal a better option?
We had a policy change last year when the new government came in Australia. We are really committed to higher targets of climate change in climate goals.
The government is prioritising renewable, yes. But no one has suggested that this is going to happen overnight. It is going to happen and it is going to happen at a quicker pace.
India-Australia ECTA was signed in 2022. What is the status of CECA?
Look, the good news is that under Australia-India economic cooperation — ECTA progress is happening. It is a full free trade agreement. We are seeing products going in both directions. For instance, textile — free of tariff, making it cheaper in Australian market.
But, the real focus now is on CECA. When Australian Prime Minister Anthony Norman Albanese was here in India along with the trade minister and they had meetings with their counterparts here, they talked about prioritising progress on the CECA.
Third quarter of this year was talked about to resolve it. Negotiators are playing actively together and I am optimistic that we will see that CECA resolved this year.
We also understand that practically it needs to be resolved this year because India gets pre-occupied with elections next year.
India and Australia have further strengthened cooperation on development of critical minerals projects and supply chains. What is the status?
I suspect you will see some announcements around it during the time of the visit of Prime Minister Modi to Australia.
The critical mineral story tells the reason why Australia and India are able to strike trade deals. Australia has reserves of at least 18 of the 43 critical minerals identified by the Indian government.
We have seen what critical minerals India wants and needs to grow its industry. If India wants to fulfil Prime Minister Modi’s EV mission — battery mission — or even move into semi-conductors and solar panels, critical minerals are essential.
And Australia can emerge as a trusted partner with secure supply chain. It can be a great success story for the economic relations with Australia. For example, we are trying to match make companies with suppliers so that it can be win-win for all.
What is the lithium agreement about? Is the world moving from carbonised to non-carbonised fuel?
I think there is enormous movement in the world from carbonised to non-carbonised fuel.
For instance, the future of hydrogen is what you will see as an area of progress in the relationship between the two countries. We are complementing each other and not competing with each other.
Why is Australia still having reservations on acknowledging GI tag for India’s Basmati rice?
It is a good example where even though we are good trade partners, we have similar histories in institutions and systems, but in this case, we have different ways in which we do it.
So, though quite a popular rice in Australia, it comes from different parts of the world. India has requested something which we don’t normally provide, we are working together to sort it out, but nothing is very easy even in the best relations.
Our systems don’t match in trademark and rest so it takes time. What takes us through is trust.
- Also read: Quad members commit to expanding UNSC