For More access to Indian Agri markets, Aussi Minister should Develop Taste for Amul Cheese !!!
Don Farrell, the Australian minister for trade and tourism
Trade and Tourism Minister Don Farrell wants investments by Indian companies in the Australian mining sector, especially in mining critical minerals like lithium.
The Economic Cooperation and Trade Agreement, or ECTA, became operational on December 29 last year between India and Australia. Since then more than 85 per cent of Australian goods coming into India are tariff-free, according to Australia’s Department for Foreign Affairs and Trade.
This is expected to rise further to 90 per cent in the next six years. Similarly, about 96 per cent of goods exported by India to Australia would be free of tariffs. In another four years, tariffs on the remaining items would also be removed.
So it was most surprising when the Australian Customs at Tulamarine International Airport, Melbourne refused permission to an Overseas Citizen of India to take two tins ( perfectly sealed) of Cheese of the famous Indian brand AMUL, his favourite. This should have been permitted as per rules laid out by Australia itself for permissible food items. May be it was not AGRO SAFETY but the fact that someone was liking a non Australian cheese and that too from India over the Australian Cheese !!!
Now in addition to ECTA, India and Australia are also in talks to finalise a more wide-ranging Comprehensive Economic Cooperation Agreement that is aimed at deepening the economic and trade ties. Two-way trade between the two countries was valued at less than USD 25 billion in 2020.
The aim was to take it to about USD 100 billion in the next five years. Australia is now pressing for greater access to India’s agricultural markets.
Well it seems that for closer Cooperation we need to develop taste for each others products. So Mr Don Farrel, Australian minister for Trade and Tourism should not only develop a taste for the Amul Cheese but also ask his Custom Department to do the same.
Developing taste for Amul Cheese by Australians will lead to Indian companies to invest in mining and the development of critical minerals used in the manufacture of batteries. Australia will also have to promise a more favourable visa policy for Indian workers and students entering Australia. It has to be a two way exchange in both GOODS and SERVICES.
“The trade agreement (Economic Cooperation and Trade Agreement that became operational in December last year) has resulted in lots of reductions in tariffs on both sides. Just in the first month, in January this year, about 2.5 billion Australian dollars’ worth of Australian trade went into India at lower tariffs. From our point of view, it (the trade agreement) is obviously a very positive outcome… But, of course, more needs to be done,” said Australia’s Minister for Trade and Tourism Don Farrell.
“We would like greater access to India’s agricultural markets. We appreciate that it is going to be a difficult issue for India, but we think it can be achieved. You have just got to see, I guess the word is chemistry, between our Prime Minister (Anthony Albanese) and Prime Minister (Narendra) Modi,” Farrell said. For this chemistry to develop Australian Customs has to follow agreed rules and not work as per their whims and fancies. I got to start liking AMUL CHEESE !!!
The agreement has also resulted in a reduction of tariffs on several other items, including a few agricultural items exported by Australia to India like barley, oats, lentils, fruits and vegetables. Farrell said there was scope to do much more in the agriculture sector.
“We have a population of 26 million. But we produce food for 70 million. So, we have a lot of food to export. Our grain crops have had a record year in South Australia… We have had a good couple of years (of agricultural production)… no drought, plenty of rainfall. So we think there is an opportunity (for greater exports of agricultural produce to India),” he said.
“We don’t want to disadvantage your farmers and we understand the political pressures on the government from that particular group (on the issue of reduction of tariffs). Please don’t think we do not understand that issue. But we think there is an opportunity through technology transfer and through particularly high-value exports to get greater access for Australian (agricultural) products into the Indian market,” Farrell said.
Australia, on its part, wants investment from Indian Companies in its Mining Sector. It is ready to offer attractive investment opportunities to Indian companies in the mining sector, especially in mining critical minerals like lithium which have suddenly become extremely precious because of their use in batteries. Australia has some of the largest reserves of lithium, nickel, cobalt and some other metals, all of which are being tried to manufacture the batteries of the future which can be used to power electric vehicles and also as an alternative to diesel generators to provide backup electric supply.
“We are a small country (by population). We do not have great amounts of capital. We have always needed overseas investment to get the best out of our mining industry. We have been great exporters of coal and iron ore. Critical minerals like lithium and all the other raw materials that are going to be required to do the decarbonizing transition from fossil fuels to renewables are quite different.
Their mines tend to be smaller. They tend to be much deeper down. So, more money is required to extract them compared to iron ore or coal. Much bigger investments are required. And, we are looking at Indian companies (to invest in the mining sector),” Farrell said.
“There are a number of Indian companies that are already here. They already invest here, including in the mining industry. But we think there is a greater opportunity here. India has committed itself to decarbonisation as well. We are lucky in Australia to have got the world’s largest or second-largest reserves of all the critical minerals. We used to be a fossil fuel superpower. We now want to be a renewables superpower. But we are going to need some partners to get the best out of that,” he said.
Farrell said Australia was willing to consider providing incentives to Indian companies willing to invest in the mining sector. “We would be happy to talk about that,” he said.
He said India wanted greater access to Australia’s labour markets and that could also be considered.
“It (increase in foreign workforce) is always a sensitive issue in Australia, but we are happy to look into that. We are currently reviewing the whole structure of our visa system. There are something like 120 different visas under the Australian system and we are hoping to simplify the entire visa system.
One of the things we are looking at is designing a fit-for-purpose migration system. I think, in that whole discussion, there would be good opportunities for Indian workers, particularly those in the digital space, to come to Australia,” he said.
Well India too is happy to look into a favourable trade and investment interaction with Australia. However it has to be a comprehensive GOODS and SERVICES Exchange and not just selective items.
