Kevin Rudd’s vision of forming an Asia-Pacific Union in the lines of European Union is gaining steam as the country is nearer to signing Free Trade Agreement (FTA) with India. According to the India’s Industry and Commerce Minister Kamal Nath the feasibility study of the FTA will be tabled soon for finalization of the deal. Indo-Australia FTA is expected to be signed soon after ASEAN’s Bangkok summit in December this year which will become another venue for similar pact between India and ASEAN.
Sometime back, Australia’s Foreign Minister Stephen Smith had remarked that though the southern Indian Chennai port was closer to Perth, the trade between both nations has not reached the desired heights as compared to Shanghai, Seoul or Tokyo. Australian business entities are likely to focus on opportunities in the field of telecommunications, mineral processing, financing, etc with the likely deal. They are also expected to share expertise in agricultural logistics to facilitate Indian farmers get their produce to markets faster.
On the contrary, India will continue to explore the areas of information technology and agri-business in Australia. However, the recent announcement by the Australian government that they would supply uranium only to countries party to Non-Proliferation Treaty has created confusion in India as well as in Australia. Some industry observers and leaders have challenged the logic behind supporting Indo-US nuclear deal at Nuclear Suppliers Group Meet but at the same time not committing to supply uranium to India. Australia is home to 40% of the uranium deposits in the world, and India has not signed NPT.
When Smith visits India next week, he is expected to meet External Affairs Minister Pranab Mukherjee, and major political leaders. With this visit he hopes to cement a long-term international relationship and bring India to the fore front in bilateral ties. Though there is no inter-relation with FTA and uranium supplies, any fallout in talks would be a road block to two way trade and cooperation in international affairs as India is in a position to obtain uranium from elsewhere.