News Highlight
An Australian parliamentary committee on treaties has recommended to its government to ratify the India and Australia trade pact.
Key Takeaway
- The India-Australia Economic Cooperation and Trade Agreement (AI-ECTA) needs ratification by the Australian parliament before its implementation.
Importance of India-Australia relations
- Energy security:
- Australia is a crucial source of imports of coal and uranium.
- The Carmichael coal mine is a coal mine in Queensland, Australia. operated by Bravus Mining & Resources. Thus, Australia is key to India’s energy security.
- “Make in India” products:
- Australia is a lucrative Indian-made product market and can replace Chinese-made products.
- Security:
- Australians play a vital role in maintaining a safe and secure Indo-Pacific area.
- Australia became part of the QUAD.
- The Quadrilateral Security Dialogue (QUAD) is a strategic security dialogue between Australia, India, Japan, and the United States.
- UNSC
- Australia has been supporting India’s demand for expansion and inclusion of the UNSC (United Nations Security Council).
India-Australia relations:
- Political:
- India first established a trade office in Sydney, Australia, in 1941. It is currently represented by a High Commissioner in the embassy in Canberra and consular generals in Sydney, Perth, and Melbourne. Australia has a High Commission in New Delhi, India, and consulates in Mumbai and Chennai.
- Trade:
- India is one of Australia’s largest trading partners.
- India is Australia’s largest export market for gold and chickpeas, coal, and copper ores and the largest market for lead and wool.
- India and Australia signed an Economic Cooperation and Trade Agreement (ECTA) that aims to double bilateral trade to $50 billion in five years and ease the movement of people, goods, and services across borders.
- India-Australia ECTA
- It covers almost all the tariff lines dealt in by India and Australia respectively.
- India will benefit from preferential market access provided by Australia on 100% of its tariff lines.
- India will be offering preferential access to Australia on over 70% of its tariff lines.
- Strategic relations:
- In 2009, the two countries formed a “Strategic Partnership,” which included a Joint Declaration on Security Cooperation, that was upgraded to a “Comprehensive Strategic Partnership” in 2020.
- Sharing common platforms:
- India and Australia share platforms like G-20, Commonwealth, IOR-ARC, QUAD, ASEAN Regional Forum, and the Asia Pacific Partnership on Climate and Clean Development, and have participated in the East Asia Summits.
- Education:
- The Australia-India education partnership is essential in driving engagement, collaboration and building the bridge between the communities.
- Unique among India’s education partners, Australia has a ministerial lead policy forum, the Australia India Education Council (AIEC), which provides a platform for ministerial engagement on policy and operational issues across education.
- The AIEC is co-chaired by education ministers from both countries and includes government, academia and industry representatives.
- Diaspora:
- There is a rapidly growing Indian community in Australia.
- They contribute significantly to the Australian economy as teachers, doctors, accountants, engineers and I.T. professionals.
- Cultural Cooperation:
- The Joint Working Group Meeting between India’s Ministry of Skill Development and Entrepreneurship and Australia’s Department of Education, Skills and Employment was held virtually in 2020, following the signing of a new Memorandum of Understanding on Cooperation in Vocational Education and Training.
- Science and Technology Relation:
- Establishment of Australia – India Strategic Research Fund to encourage research.
- Australian assistance for the Clean Ganga Program.
- The Australia-India Leadership Dialogue:
- It is the premier forum for informal diplomacy between Australia and India.
- It is structured as a multistakeholder cross-sectoral roundtable involving 50 delegates, including business leaders, cabinet ministers and government officials, whose thought leaders join academia, media, and civil society to address shared challenges in the Australia-India relationship and explore areas for cooperation.
- Nuclear:
- In 2014, India and Australia signed a Civil Nuclear Deal, and in 2017, Australia started to make plans to supply its first uranium shipment to India.
Content Source: Indian Express