Australia mulling FTA with India

In a bid to launch a new strategic approach towards India, the Australian Cabinet has endorsed a plan to negotiate a Free Trade Agreement (FTA) with New Delhi.

Melbourne, Aug 20 : In a bid to launch a new strategic approach towards India, the Australian Cabinet has endorsed a plan to negotiate a Free Trade Agreement (FTA) with New Delhi.

In what would be a historic shift in relations with India, being seen as an emerging economic powerhouse in South Asia, the proposed FTA will be as important as the embrace of China in the 1980s and '90s, and Australia's earlier engagement with Japan.

According to The Australian, the submission by Foreign Minister Alexander Downer went to the full Cabinet, unlike the decision to allow the sale of uranium to India, which was considered by the national security committee.

The FTA proposal comes after the government figures surprised at how rapidly the Indian economy has grown.

An FTA with India is likely to provide enormous opportunities for Australian companies in the services sector, apart from the obvious synergy in energy trade, the familiar common-law system, and India's success in IT sector.

According to the paper, the submission regarding India contains a raft of specific initiatives, and is designed to elevate the relationship with India to a core element in Australia's international orientation, along with the US, Japan, China and Indonesia.

While negotiating an FTA with New Delhi, Canberra will continue its full fledged engagement in the quadrilateral talks involving the US, Japan and India, despite Chinese opposition.

The Cabinet submission, which recognises India's growing importance to Australia, contains a series of specific proposals to enhance relations.

Apart from allowing the export of uranium, which was approved last week by Prime Minister John Howard, these include formal and active diplomatic support for India's bid to become a permanent member of the UN Security Council.

Much of the submission is devoted to the sale of energy to India. It also envisages elevating the joint working group on minerals and energy to ministerial level, as a key tool in managing the energy relationship.

Besides, it contains a wide range of proposals for enhanced security co-operation, including joint naval exercises, intensified co-operation in counter-terrorism, peacekeeping, all aspects of maritime security and greater engagement on border and transport security.

The Cabinet has accepted all these recommendations, which also includes Australian Federal Police's (AFP) permanent presence in New Delhi, and mining, agriculture, services and investment as sectors for potential large-scale expansion in Australian trade with India.

Canberra is also mulling establishing an Indian studies centre on the lines of the American Studies Centre being set up at the Sydney University.

ANI