FILE - In this Nov. 18, 2014, file photo, India's Prime Minister Narendra Modi, left, waves as he is escorted by Australian Prime Minister Tony Abbott as they leave the House of Representatives at Parliament House in Canberra, Australia. An India-Australia free trade agreement would signal the "democratic world's tilt away from China," trade envoy and former Australian Prime Minister Tony Abbott has written on Monday, Aug. 9, 2021. (AP Photo/Rick Rycroft, Pool, File)
CANBERRA, Australia (AP) — Australian special envoy and former Prime Minister Tony Abbott said a free trade agreement between his nation and India would signal the “democratic world’s tilt away from China.”
Abbott visited New Delhi last week as Australia’s special trade envoy for India as the Australian government gives priority to sealing a bilateral trade deal.
In an opinion piece likely to anger Beijing that that was published in The Australian newspaper on Monday, Abbott said the “answer to almost every question about China is India.”
“With the world’s other emerging superpower becoming more belligerent almost by the day, it’s in everyone’s interests that India take its rightful place among the nations as quickly as possible,” Abbott wrote.
“Because trade deals are about politics as much as economics, a swift deal between India and Australia would be an important sign of the democratic world’s tilt away from China, as well as boosting the long-term prosperity of both our countries,” Abbott added.
Abbott was prime minister when China and Australia finalized a bilateral free trade deal which took effect in 2015. He also hosted a state visit by Chinese President Xi Jinping a year earlier.
Relations have since soured over issues including Australia banning Chinese telecom giant Huawei from major communications infrastructure projects, outlawing covert foreign interference in Australian politics and calling for an independent investigation into the origins of the COVID-19 pandemic.
Abbott accused Beijing of “capricious boycotts” of Australian exports including coal, barley, wine and seafood that demonstrated Chinese use of trade as a “strategic weapon.”
“The basic problem is that China’s daunting power is a consequence of the free world’s decision to invite a communist dictatorship into global trading networks,” Abbott said.
“China has exploited the West’s goodwill and wishful thinking to steal our technology and undercut our industries; and, in the process, become a much more powerful competitor than the old Soviet Union ever was, because it’s now a first-rate economy that’s rapidly developing a military to match; and spoiling for a fight over Taiwan, a pluralist democracy of 25 million that’s living proof there’s no totalitarian gene in the Chinese DNA,” Abbott added.
The Chinese Embassy in Australia did not respond to a request for comment on Monday.
Negotiations between India and Australia on a Comprehensive Economic Cooperation Agreement began in 2011 but were suspended in 2015.
India is particularly concerned by freer trade in Australian farm exports. New Delhi’s demands for less restrictive visas for Indian workers is a major sticking point for Australia.
Australia’s current Prime Minister Scott Morrison and his Indian counterpart Narendra Modi last year upgraded the bilateral relationship with a raft of agreements that strengthened defense ties and committed both nations to expanding trade.
Abbott visited India last week to “propel our economic relationship to its full potential, to the mutual benefit of the Indian and Australian people,” Australian High Commissioner to India Barry O’Farrell said in a statement.
VVG57 on August 10th, 2021 at 17:05 UTC »
While good people to people relations between India and most English speaking countries are inevitable, I am not sure if India can do for the West what China can. Western economies, especially the English speaking ones, are service and innovation based, relying on East Asian manufacturing prowess to keep the price of industrial goods low.
Contrary to what many assume, there simply isnt a constituency for mass industrialization in India. The English speaking elite want the same tech and finance jobs that elites in the West do. The farm-based rural population has no inclination to give up its land holdings and self employed standing in exchange for a few extra rupees. There are the urban poor and migrant populations, who would benefit from factory jobs, but they are scattered and nowhere as well represented politically as the farmers.
At the most, India will develop an industrial base aimed at curbing its own imports from China. Once that is achieved, it will have a healthy current account surplus from investments and software, pharmaceutical and agricultural exports. Which politician will dare take on well entrenched farmer groups, 50% of the population, to assemble phones and toys for the West ?
3rdOrderEffects on August 10th, 2021 at 12:22 UTC »
Here is the original op-ed by Tony Abbott that this article is based on
https://theaustralian.com.au/commentary/india-the-sensible-substitute-for-belligerent-beijing/news-story/2d7940c990e38bb4c4574c38c2c45e79
The main specific focus of the article is on trade and mainly getting an Australia-India trade deal that reduces tariffs and promotes privatization.
India indeed is promoting privatization to some extent but it still has high tarrifs and a protectionist approach to trade in many sectors. The would have to change to maximize trade.
Another specific information from this article is that India and Australia will sign an early harvest agreement before 2022
So the fully fledged FTA is still going to take a lot more time
frrrrrro on August 10th, 2021 at 11:00 UTC »
Submission Statement: Australian special envoy and former Prime Minister Tony Abbott said a free trade agreement between his nation and India would signal the “democratic world’s tilt away from China.” Abbott visited New Delhi last week as Australia’s special trade envoy for India as the Australian government gives priority to seal a bilateral trade deal. In an opinion piece likely to anger Beijing that that was published in The Australian newspaper on Monday, Abbott said the “answer to almost every question about China is India.” “With the world’s other emerging superpower becoming more belligerent almost by the day, it’s in everyone’s interests that India take its rightful place among the nations as quickly as possible,” Abbott wrote.