The Hindu : International / India & World : India, Australia to evolve `trade framework'

Online edition of India's National Newspaper
Monday, May 23, 2005

International

International - India & World

India, Australia to evolve `trade framework'

P.S. Suryanarayana

``It will provide a very good fit'' ``It will not be a free trade agreement as such but will cover bilateral interactions''

SINGAPORE: India and Australia have agreed to fashion a bilateral ``Trade and Economic Framework'' while New Delhi and Singapore have ``finalised'' their ``Comprehensive Economic Cooperation Agreement.''

These developments were spelt out by Union Commerce Minister Kamal Nath in a brief telephonic conversation as he transited through Singapore on Saturday while on his way back home from Australia.

The initiative for TEF was decided upon during the Australia-India Joint Commission meeting that took place in Sydney a few days ago.

The move is in line with Australia's highly evolved economic relationship with Japan and marks a positive breakthrough in Canberra's interactions with New Delhi, according to diplomatic sources.

The Joint Commission meeting was presided over by Mr. Kamal Nath and Australian Trade Minister Mark Vaile.

Other key participants included India's High Commissioner to Australia P.P. Shukla and his Australian counterpart John McCarthy and India's Joint Secretary (Commerce) S.S. Kapur.

Mr. Kamal Nath said the proposed framework with Australia would not be a free trade agreement as such and would indeed cover bilateral interactions in regard to investment, technology, services and also goods.

As for the rationale of the planned framework, he said Australia's natural resources and India's human resource provided for ``a very good fit.''

So far, New Delhi's engagement with Canberra ``has not been very much'' and the idea was to ``put India on the radar of Australia,'' which had tended to look towards north Asia rather than south Asia, Mr. Kamal Nath said.

Besides co-chairing the Australia-India Joint Commission, he participated in a meeting of the Joint Business Council and met the premiers of the Australian states of New South Wales, Victoria and Western Australia. Discussions were also held with the Australian Minister for Information and communications Technology and the Arts Helen Coonan.

The Australia-India merchandise trade is now of the order of 5.5 billion Australian dollars, and a goal set now is to raise this to the eight billion mark within the next two or three years.

While the Australian investments in India are of the order of $200 millions, India's investments in Australia are considerably higher, at about $1 billion, on account of Indian participation in the information technology and mining sectors.

On the India-Singapore front, the signing of the CECA was now expected to take place next month, Mr. Kamal Nath indicated.

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