Source: Minister for Trade
Minister for Trade, Don Farrell: Good afternoon everybody, and please take a seat, don’t stand on formality. I thank the Governor for making her home available to us today to hold this press conference with my very good friend, the Trade Minister for India, Piyush Goyal, it’s absolutely wonderful to have you here.
When I first became the Trade Minister for Australia, I was lucky enough to be invited to Piyush’s home in New Delhi, and have a wonderful feast with him and his wife, and a little bit later on today I’m going to return the favour. We’re heading out to the magnificent Clare Valley, and we’re going to have a wonderful meal out in the Clare together this evening.
We’ve just wrapped up our face‑to‑face meeting, and it’s the first meeting that we’ve had since the Modi Government was recently re‑elected, and of course follows on the weekend’s events between our Prime Minister and Prime Minister Modi in Delaware, with the Japanese and the American leaders.
I think it’s fair to say that the relationship between Australia and India has never, ever been closer. And to reflect that, is the economic relationship between our two countries, and it has never ever been better.
Following our Trade Agreement that was ratified during the course of this Parliamentary session, trade with India is turning out to be a really big win for Australia, and today we held in‑depth discussions on how to accelerate that trading relationship. And in addition to that, our investment relationship viability on the enormous growth that we’ve just seen in recent times.
Just to give you some examples of that, in the 18 months since our Trade Agreement with India came into force, nearly $30 billion worth of Australian exports have entered India either with zero tariffs or lower tariffs than any of our competitors.
Agricultural exports to India are up around 60 per cent to $1.6 billion, and we know how important that is to the South Australian economy.
Industrial equipment and manufacturing exports are up 66 per cent or $145 million, and our health exports to India have increased by nearly 40 per cent to $33 million.
Australian consumers are of course benefitting by our trade deals with savings at the checkouts worth around $225 million, thanks to the lower tariffs on products that are coming in from India.
During our meeting, Minister Goyal and I discussed how we can grow our two‑way trade and investment even more. The key focus of today’s discussion was our next free trade agreement called the Comprehensive Economic Cooperation Agreement.
Our trade negotiators recently met in Sydney, and today’s discussions show that there’s real momentum here to get an agreement as we work out the details.
For Australia, we’ve made it clear that we have much to offer our friends in India, particularly in agriculture, as well as the emerging sectors we are building as part of our Future Made in Australia.
We also exchanged a Memorandum of Understanding on investment cooperation between Austrade and Invest India, which will help boost two‑way investment between our countries.
Our Government has also wrapped up consultations on our new India Economic Roadmap. We’ve held over 400 consultation sessions across every Australian State and Territory and in India.
Over the past two days, Minister Goyal has heard from a range of Australian businesses who see wonderful opportunities to partner with India in sectors like green energy, education skills, tourism, agriculture and technology, and in a few moments the Minister and I will walk up to the Australian Space Agency headquarters to meet some of the Australian space start‑ups that are partnering directly with India.
Our Government is committed to driving more practical cooperation between Australian and Indian businesses. That’s why today I’m announcing $10 million in new grants for Australian businesses, organisations and universities to boost cooperation with India.
By extending the $10 million Maitri Grants program, the Government will deliver, firstly, $5 million for Australian organisations working on projects that boost trade and innovation, cultural ties and community leaders, and then a further $5 million for scholars and fellowships to support Australian universities to host some of the brightest Indian students in their research, on some of our biggest shared challenges.
As I indicated before, the Minister and our wives, will be heading out to the magnificent Clare Valley, and we’ll continue to discuss the wonderful opportunities between our two countries. I’ll invite my good friend Piyush to say some words about today’s events and his time in Australia.
Indian Minister for Commerce and Industry, Shri Piyush Goyal: Thank you very much Honourable Don Farrell, Member of Parliament and Minister for Trade and Industry, someone I look upon as not only a friend and well‑wisher, but a brother who has been a guide, who has helped me understand trade nuances, very sensitive, ever‑smiling, and a well‑wisher of the Australia-India partnership.
Thank you very much for your warm hospitality, thank you very much for bringing me to Adelaide for the first time. What a beautiful city, charming, a place we’ve heard about from childhood. Where cricket matters and in the good old days, we had five‑day test matches where every wicket falling was blown all over the television and radio. But to actually be right across from the Adelaide stadium is truly a memorable visit for me.
We had very good engagement with Australian business persons in Sydney over the last two days, the excitement is truly palpable on both sides, Australian business and Indian business.
For the first time ever both our major chambers, the conflagration of Indian industries and the conflagration of Indian chambers of commerce and industry were represented by their top leadership together as a testimony of the importance that the Australia relationship is to India.
We are looking at significantly upscaling our partnerships in trade, investment, tourism and technology, and therefore one of the first announcements I’d like to make is that we shall shortly be setting up in Sydney an office covering all these four areas, ITTT, investment, trade, technology, and tourism. With representatives of Invest India, representatives of the organisation responsible for building industrial smart cities and townships, meeting representatives of our Export Trade and Guarantee Corporation, and other officials related to trade and tourism.
Along with the private sector, CII jointly manning these offices to act as a bridge between investors and businesses on both sides and working closely together with Austrade with whom Invest India has today exchanged an MOU for mutual investment promotion, technology and trade facilitation, and other insights into economic trade.
Thank you very much, Don, for giving us the encouragement to work together on these areas. And I’m sure the unprecedented ties that our two countries are sharing today with nine in‑person meetings since May 2022, in less than three years, nine in‑person meetings of our senior leaders, both Prime Ministers, reflecting the big bonding that both Prime Ministers, political leadership have with business-to-business and people‑to‑people connect that Australia and India share.
Friends, today is a very important day in India. We are celebrating 10 years of our Making India Program. Prime Minister Modi on 25 September 2014, had launched this initiative, and through the Making India Program over the last 10 years we have significantly had a whole of government approach to addressing the challenges that manufacturing in India increase. Whether it’s provision of plug-and-play infrastructure, a national single window for all approvals, regulators reducing compliance burden or decriminalising laws, opening up foreign direct investment in newer sectors making it easier to invest in India, or encouraging the start of ecosystem. It’s been a multi‑pronged approach to attract manufacturing in India, and I do see a lot of promise between the Making India Program and the Future Made in Australia program that your government has launched, so that we can exchange the technologies, exchange opportunities and encourage businesses on both sides to work with each other.
This enhanced cooperation via education, via skill development, tourism, investments, critical minerals, which we discussed at length today, or renewable energy, green ecosystem towards sustainability, all of these other areas where this relationship holds tremendous potential. And India is committed to partner with Australia to provide a bouquet of opportunities to our business persons on both sides so that we can work towards a greater and more ambitious relationship on the economic front.
Friends, as Minister Farrell mentioned, ECTA, and I think some of you may recall, ECTA in India, in Hindi, is unity. This agreement has truly been a game‑changer providing greater market access to businesses on both sides and has resulted in a significant increase in merchandise trade. We’re looking at further strengthening the ECTA through to the Comprehensive Economic Partnership Agreement, the CECA, and we do hope to see a greater flow of goods and services along with investments flowing out of the CECA, which we are looking to conclude at an early date to unlock new dimensions in this partnership and provide further momentum to this business relationship.
Friends, I must mention that we have also discussed at length greater cooperation at various multilateral fora like the WTO, the G20, the IPEF and other international organisations where Australia and India share common interests.
India is the world’s fastest growing economy today. We grew at 8.2 per cent last year. The economy today is the fifth largest in the world, expected to become the third largest in the next three years. We will cross the $7 trillion mark by 2030, and the $10 trillion mark by 2034, 10 years from now.
We are very confident of achieving a developed country status by 2047. [Indistinct] 2047 is our ambition, is our goal, taking up our economy to 10 times today’s size, to $35 trillion economy in the next 25 years or so, so that we can meet the aspirations of 1.4 billion Indians for a better quality of life. And I see Australia playing an important role in this journey towards making India a developed nation, a role to greater trade, a role to exchange of technologies, a role in our common goals for sustainability and a significant role when it comes to provision of high-tech services and investments.
India offers the advantage of four Ds. The first is our democracy. We have a vibrant democracy, the world’s largest democracy, the Rule of Law prevails, it provides safety and security for investment and people. And I think in today’s day and age, two democracies working together provides a great comfort to investors in the long run.
The second D is our demographic dividend, a young population with an average age of 28.4 years, expected to remain young for many, many more years to come, with two‑thirds of our population in the working age to providing skills, talent and huge manpower force to help the economy to move faster.
The third D is demand. 1.4 billion aspirational Indians, demanding high quality goods and services is a huge market opportunity, and growth opportunity.
And the fourth D is decisive leadership. The Prime Minister Narendra Modi and the Government are willing to reform, transform and perform to take the country to greater heights. I’m very confident that together we shall make the Australia-India partnership a defining partnership of the decade, if not the 21st Century. The kangaroos and the tigers together have a combined strength which is unstoppable. Thank you.
Minister for Trade: I think we should give Piyush a clap for that. Thank you, very much, my friend, and we’ll open to questions.
Journalist: This one’s for both Ministers. Can you give an update on the CECA negotiations? You made progress of the outstanding points of difference, and do you see an agreement for Australia [indistinct]?
Minister for Trade: We are very optimistic that the good work that was done today will result in an expanded agreement. As we saw with the United Arab Emirates, when both parties put their mind to it we can very quickly expedite the discussions to finalise an agreement. I’d be hopeful that goodwill on both sides, and you can see today, that’s been demonstrated here – I think with goodwill we can very quickly resolve this issue, and we can have a new upgraded agreement between Australia and India.
Piyush Goyal: Madam, I think the important and defining feature of our discussions and negotiations is the sensitivity that both sides have to each other’s issues, defensive interests, offensive interests. All are considered together in a manner which will only result in a win‑win situation. So any issue that I can see Australia will be uncomfortable with I would not like to push, press on that, and likewise our approach has been that if something is very sensitive to a large Indian population given our current status of development, Australia has been very gracious in their understanding of our sensitivities.
It is my deep confidence in each other that helps us to resolve issues very fast, and I’m very confident that the final agreement will only help grow this relationship. You saw that our first agreement didn’t have any negative press or any negative public outcry. I’m sure the second agreement will correspondingly be a good mix of the good things that people want out of the agreement.
Minister for Trade: I think it’s worthwhile repeating that when we were last in India together we committed to increasing our trade from its current $49 billion two‑way trade to $100 billion by the end of the decade, and I think we’re ‑ I’m certainly happy, and I think I speak for Piyush here, to restate that today.
We want to double that trade between our countries between now and the end of the decade.
Journalist: Just on that, Minister Goyal, India has traditionally been hesitant about removing barriers to Australian exports in sensitive sectors like dairy. Have you had consultations with those domestic producers and has the Government consulted with its Coalition partners on any of those sensitivities?
Piyush Goyal: First of all, the Government in India is a strong government. The Coalition is a pre‑poll alliance. So we have very seamless consultations and very seamless understanding of any decisions that the Government takes.
As regards dairy, that sector was discussed even before we started the negotiations with Australia three years ago, and Indian dairy is very significantly different from Australian dairy.
Our average holding with a farmer is a small two‑acre, three‑acre farm with three or four livestock, whereas Australia’s farms and dairy farms are both very large, and it would be near impossible for these large farms and these small farms to compete with each other on a common footing.
We have discussed this issue even three years ago and on earlier occasions, and dairy is such a sensitive subject that in any of our FTAs across the world, we have not been able to open up the dairy sector with duty concessions there is permitted in India, but there are certain duties imposed on that.
This is one sector where there’s no discussion with any Coalition partner, even when we were a full majority government there was no opening up of the dairy. It’s actually two very unequal situations and would not lend themselves to fair trade between the two countries, or between any countries. We have neither opened up dairy in Europe, or planning to open up dairy in Europe, nor have we opened it up even with Switzerland and Norway, with whom we have recently concluded an FTA under the EFTA grouping – Switzerland, Norway, Lichtenstein and Iceland. Even then we have not opened up dairy. It’s the first agreement Switzerland has signed without any component of dairy in it.
Journalist: You predicted that China will bring its pursuit of all lobster type business. Given your previous predictions on the subject have proven optimistic, why do you have the confidence that this will be resolved in the next few months?
Minister for Trade: I’m an optimistic sort of person, and I think the only way you can do this job is to be optimistic. If you think about this, when we came to government two and a half years ago, we had $20 billion worth of impediments between Australia and China.
We have reduced that over time to less than $1 billion and one product that is still outstanding unfortunately is lobster.
We’ve recently had meetings both with the Chinese Premier, and also my counterpart, Wang Wentao, in fact as Piyush has done. They both came to Adelaide, it’s becoming a bit of a feature of international trade these days, everyone’s coming to Adelaide. I’m confident that we can resolve the outstanding issues in a timely manner.
It is unfortunate that that issue hasn’t been resolved. The Government is doing its absolute best to resolve it, but these issues do take time, and we’ll continue to work very closely with the Chinese Government to put aside all of the outstanding issues between our two governments.
Journalist: Paul Starick from The Advertiser in Adelaide. Two questions, one for both ministers. You mentioned agriculture as a significant component of the next stage of your agreement. Do you care to elaborate on that, what particular opportunities do you see? And secondly, for Senator Farrell, regarding an unrelated issue at the Whyalla steelworks. The Premier has talked about the importance of that as a national enterprise. Do you agree, and what response given its current predicament do you think is appropriate at a national level?
Minister for Trade: Well, look, in terms of agriculture, we’re talking about the removal of all of the tariffs that weren’t removed at the last process, so we’ve made very significant progress, but as the Minister said, some of the more difficult issues were not resolved at that issue, we put them to one side, they’re all back on the table. So things like chickpeas, pistachios, and apples. So, all of the issues, all of the products where there are still tariffs ‑ wine is another one ‑ we are seeking to have those tariffs removed.
I’m not going to go to the details of the negotiations, it’s not appropriate to do that here, but we’ll continue to work through, and as Piyush said, where issues are difficult, we understand that, and we’re not going to make life any more difficult for the Indian Government.
On the other issue, I’m aware that there have been some discussions between the Prime Minister and the Premier over the issue of Whyalla. Obviously steel making is a very important business in Whyalla. As a government we want to see steel making continue, and of course all of those jobs be protected, and we will, of course, continue those discussions between the Prime Minister and the Premier.
Minister, you might like to answer that first question.
Piyush Goyal: I think as you very rightly put it, we let the negotiators take the discussions forward and give them a chance to look at what other possibilities as we conclude the CEPA.
Minister for Trade: Well, if there are no other questions, thank you very much for coming along today, and we’ll head up to the Space Agency after a quick lunch with the Premier and the Governor. Thank you very much for attending.
Piyush Goyal: Thank you friends.
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