{"id":960,"date":"2015-09-29T13:15:11","date_gmt":"2015-09-29T13:15:11","guid":{"rendered":"http:\/\/www.southasiantimes.com.au\/?p=960"},"modified":"2015-09-30T13:19:56","modified_gmt":"2015-09-30T13:19:56","slug":"australia-india-ceca-to-be-beneficial-for-india","status":"publish","type":"post","link":"http:\/\/www.southasiantimes.com.au\/?p=960","title":{"rendered":"Australia-India CECA to be beneficial for India"},"content":{"rendered":"

\"ele<\/a>India and Australia have agreed to conclude a Comprehensive Economic Cooperation Agreement (CECA) by the year\u2019s end. India wants deals that are mutually beneficial. This is our starting point. Win-win characterised our free trade agreements (FTAs) last year with China, Japan and South Korea.<\/p>\n

What are the benefits? The biggest benefit is to yourself.\u00a0Australia has not had a recession in 26 years, significantly because we opened to the world. Liberalisation boosted growth around 3.5% and 1 in 5 Australian jobs are trade-related. We enjoy cheaper, better products sourced from the world\u2019s best. Our products now reach way beyond our local market of 23 million. Increased trade and foreign investment are complementary.<\/p>\n

Open and business-friendly, Australia is one of the top 10 destinations for foreign investment \u2014 wealth we are investing, having the largest pool of funds under management in Asia \u2014 with similar benefits around the world. Before this wave of prosperity, many used to say we needed a protective ring to swim, a breathing space to grow. But we found that suffocating, bobbing in a bubble in the ocean. Like our famous athletes, Australia has told its businesses to go and be in it to win. No special favours. Many are striking gold.<\/p>\n

India knows this story. It is a different country to when I was posted here in 1991 when reforms were just taking hold. The Ambassador car is symbolic. Stately, yet a product of the 1950s which many said was overpriced and had long waiting lists, it paddled in the bubble. I recently read that the last one rolled off the production line. In its place is an Indian auto industry headed to be the third largest in the world employing millions.<\/p>\n

What does Australia have to offer? Your prime minister told our parliament he sees Australia as a natural partner in every area of India\u2019s priority: energy and resources, agribusiness, education and skills, infrastructure, finance and health. Just as India has core strengths for Australia: IT, manufacturing, engineering, textiles, agriculture and finance. There is so much potential. Already we do around $16 billion in trade. But we do $160 billion with China.<\/p>\n

I\u2019m asked what will be the biggest benefit of the CECA. It\u2019s nice to say I don\u2019t know. Such agreements provide the right environment for business to flourish. How it does so is up to business: the business giants of tomorrow are scarcely imagined today. But they need the right soil in which to grow. Our CECA will help the tilling.<\/p>\n

I do know that services will be important. We are both services superpowers. Nine out of 10 jobs in Australia are in services. They infuse all economic activity. For example, for the Make in India initiative, every manufacturing plant will require financial, legal, accounting, logistics, maintenance, IT, marketing, packaging, storage, health and safety, and numerous other services.<\/p>\n

I also know the CECA will plug us deeper into global supply chains. We both seek FDI to help us grow. This needs supportive trade policy. In 1990, 20% of all goods and services exported from any country ended up as inputs to other goods and services. That figure today is closer to 75%. This means one\u2019s own tariffs can hurt more than help, spiking investment.<\/p>\n

Of course, there are sensitivities. A challenge to securing such agreements is the vocal resistance of some vested interests. Where not defensible, it should not be defended. But there are exceptions. In all our FTAs we have been sensitive, and are being so with India. Often it\u2019s agriculture \u2014 although as we noted to China, even if we sold everything we produced, it would feed 60 million of China\u2019s 1.3 billion people, which allowed for some headway even there.<\/p>\n

I say this to provide perspective, not be dismissive. And, even here, if there are possible benefits we should try. Australian technology, for instance, could help lift average milk production of an Indian cow from around 5 litres to the Australian standard of 25-30 litres. Last week our negotiators met in Delhi. There is a conviction on both sides that if we do this right, both our peoples will benefit. I am confident we will get there.<\/p>\n

Source: TOI<\/p>\n","protected":false},"excerpt":{"rendered":"

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