The Hindu Business Line : Australia keen on bilateral trade ties

Trade talk
Discussions will touch energy, mining, education, tourism sectors.
Indian industry wants revenues from services to be part of bilateral trade.
Australia confident trade would grow on the lines of the Australia-China.

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Chennai Feb. 26 After cricket, trade is the next game for India and Australia. As the Trade Minister of Australia, Mr Warren Truss, put it, "Cricket has brought us together in the past. But now things are gaining momentum and we want to create an entirely different playing field — based on economic relationships." Mr Truss kick-started his weeklong visit to India here on Monday by inaugurating an Australian Consulate office.

Addressing a press conference, he said Australian investors were keen to partner with India for future opportunities. He was confident that bilateral trade between the two countries would grow on the lines of the Australia-China bilateral trade — increasing six-fold in the last 10 years to $36 billion today. Indo-Australia bilateral trade exceeds $9.45 billion at present.

Trade in energy resources is likely to dominate the upcoming discussions with the Indian Government. Australia is an energy exporter with resources of coal, oil and liquefied natural gas (LNG).

Though Indian companies have tapped these resources in the past, Australia would like to establish longer-term supply relationships, said Mr Truss. Members of the 63-strong Australian delegation told Business Line that creating a regulatory framework for energy trade was top priority in this visit.

Discussion framework

Mr Michael Moignard, Senior Australian Trade Commissioner — South Asia, said policy-level decisions on the mining and energy sector besides education and tourism would form a major part of the discussions under the `Trade and Economic Framework' (TEF) agreement signed by both countries last year.

He added some Indian companies were currently negotiating LNG supply with Australia but declined to share names.

According to Mr C. Sarat Chandran, Director, Indo-Australian Chamber of Commerce, Indian industry wants the TEF to address issues related to export of certain food products, such as quarantine, duty tariffs and export of mangoes (presently not allowed).

"Majority of trade issues today favour Australia and we want a level-playing field," he told Business Line. Besides widening the gamut of products exported, the Indian industry also wants revenues from services to be included as part of bilateral trade.

The Australian business delegation represents sectors such as agriculture, information technology, services (legal and financial), manufacturing and mining and will visit Indian companies such as Dr Reddy's Laboratories in Hyderabad. Besides discussions with the Union Government, Mr Truss will also talk to the Chief Ministers of Tamil Nadu, Andhra Pradesh and Maharashtra.