ALP pans ‘inertia’ on India trade ties

Labor has accused the Morrison government of failing to progress the nation’s India trade ties for more than two years, implementing only one of 20 priority recommendations.

Opposition trade spokeswoman Madeleine King.

Labor has accused the Morrison government of failing to progress the nation’s India trade ties for more than two years, implementing only one of 20 priority recommendations in its blueprint to accelerate the bilateral economic relationship.

Opposition trade spokeswoman Madeleine King said new Trade Minister Dan Tehan’s focus on progressing a free-trade agreement with India was welcome, but the government had failed to act on former Department of Foreign Affairs and Trade secretary Peter Varg­hese’s India Economic Strategy for the past 30 months.

Evidence to Senate estimates hearings in October revealed the government had established a consulate-general in Kolkata, as proposed by the Varghese report, but none of the report’s other priority recommendations had been implemented.

“While the report has been gathering dust, our trade relationship with India has been going backwards,” Ms King said.

“In the past year alone (2019-20), our two-way trade with India is down 13.6 per cent … and exports have fallen 18.4 per cent, according to the latest DFAT data.”

The Varghese report’s yet-to-be-implemented recommen­dations include the establish­ment of a new “study in Australia” hub in New Delhi; the convening of a new Australia-India Infrastructure Council; the scaling up of joint research; and the establishment of an Australia-India Food Partnership.

Mr Varghese said the government was taking his report’s implementation seriously. It had established a ministerial oversight group covering trade, education, agriculture and resources to monitor the report’s implementation, he said. “I am quite comfortable with the government’s response.”

Mr Tehan will make securing an Australia-India free-trade agreement a top priority as the government moves to diversify the nation’s export markets to counter punitive Chinese bans on Australian products.

Scott Morrison and his Indian counterpart, Narendra Modi, elevated the bilateral relationship to “comprehensive strategic partner­ship” in June, but negotiations on a proposed bilateral trade deal, known as the Comprehensive Economic Co-operation Agreement, have languished for nine years.

Now, after China slammed the door on at least $20bn of Australian exports, Mr Tehan said it was time to get back to the negotiating table with India.

“India is a great friend of Australia and further strengthening the trading relationship between us will be mutually beneficial,” he told The Australian this week.

“Re-engaging on a Comprehensive Economic Co-operation Agreement is in both countries’ national interest.”

In a new report, the Confederation of Indian Industry said the potential to strengthen the India-Australia relationship had “not been fully harnessed”.