India-Australia FTA shows surprising results, says Australian envoy Philip Green

Australian High Commissioner Philip Green OAM meets with Chief Minister N. Chandrababu Naidu at the Secretariat on Wednesday | Photo Source: Special Arrangement

India-Australia trade is on a great trajectory thanks to the recently announced Free Trade Agreement – Economic Cooperation and Trade (ECTA), and exports from India to Australia have increased significantly. Australia is actively exploring the possibility of building a capital city in Amaravati in Andhra Pradesh (AP), Australian High Commissioner Philip Green said.

Speaking to This HinduAhead of a meeting with Andhra Pradesh Chief Minister N. Chandrababu Naidu in Amaravati, Mr. Green said: “In the last five years, India’s exports to the world have grown by about 37 per cent, but during the same period, India’s merchandise exports to Australia have grown by 66 per cent, which is almost twice as much.”

The results of the recently signed ECTA (Economic Cooperation and Trade Agreement) are astonishing. In the last four months of this year, the utilization rate by traders and key sectors was 77%, Indian garment exports are said to have increased by over 20%, iron and steel by 25% and agricultural exports by 30%.

Opportunities in India

Mr Green, explaining the purpose of his visit to Amaravati, said he had come to congratulate Mr Naidu on his landmark victory and wish him another term as CM. The visit is also aimed at exploring development opportunities in the capital city of Amaravati. “We can talk about many sectors that Australia is interested in getting involved in – education, agriculture, water management, green energy supply chain etc. You may be aware that Canberra, the capital city of Australia, started from three sheep farms. And it is now one of the most beautiful capitals in the world. I will listen very carefully to what Prime Minister Mr Naidu has to say about the plans for Amaravati,” he said.

Australia is also focusing on exporting clean coal, key minerals for green hydrogen, green battery production, green steel, iron ore and solar panels for roofs. “Mr Modi wants to see over ten million solar roofs across the country, which is a huge opportunity for Australia,” Mr Green said.

He praised the contribution of the Indian diaspora in Australia in the fields of IT, business and other service sectors. The Indian community makes up more than one million of Australia’s 26 million people. “It is the fastest growing community in our country. Last year, more than 100,000 visas were issued to people from India,” he said. He also hoped that the diaspora would play a positive role in bilateral relations.

A Russian invasion of Ukraine is unthinkable

Commenting on the geopolitical scenario, Mr. Green expressed his opinion that Russia’s invasion of Ukraine is a clear violation of international law by a country that is a member of the Security Council. “Russia has signed many treaties with Ukraine to protect its territorial integrity. The rules-based world worries about larger countries invading smaller countries. So, what Russia has done in Ukraine is unworthy of us and we will continue to provide strong support to Ukraine,” he emphasized.

He added that the issue of India’s access to cheaper crude oil from Russia is a bilateral agreement between the two countries and part of the traditional relations between them.

On the prospects of international payments in national currencies (rupee-to-ruble payments), Mr. Green said: “I have lost count of the countries that have tried to do this, but I have not seen any of them flourish. But I would like to see India do it.”

India’s permanent membership in the UN Security Council

A key part of India’s multi-party cooperation in the Indo-Pacific region is close cooperation with Western countries. And it brings India and Australia closer together as the duo seek to address security issues, says Mr Green. He added: “We want India to succeed in the global arena. We support India’s ambition to become a permanent member of the UN Security Council. We believe it is fair and just. We want India’s vision of a global self to become a reality.”

India is an essential component of maintaining peace in the Indian Ocean region because of its geographical location, history and culture, India plays a strategic role and balance in the region, according to him. “We organized a meeting in Perth, which was attended by 27 countries from the region. And the meeting was jointly organized by India and Australia. We welcome India’s influence in the region.”

Indian Transshipment Center in Nicobar

Commenting on the Indian transshipment centre under construction in Galatea Bay in the Nicobar Islands, the Australian envoy said he preferred direct shipments over transshipment. “A lot of our trade is transshipped through ports like Singapore. But as we develop economic partnerships, why don’t we have direct shipping lines from the west coast of Australia to the east coast of India? It’s just a few days’ transport, more trade and, as a result, less shipments,” Mr Green said.