Australia-India Joint Ministerial Commission, 15th Session - Joint Statement

  • Joint media release
Canberra, Australia
  1. The 15th Session ofthe Australia-India Joint Ministerial Commission convened in Canberra on 25June 2018. The Commission was co-chaired by The Honourable Mr Steven Ciobo,Australian Minister for Trade, Tourism and Investment and Mr Suresh Prabhakar Prabhu,Honourable Minister for Commerce and Industry and Civil Aviation of India.
  2. TheMinisters reflected on the considerable growth in the Australia-India economic relationshipsince the last Joint Ministerial Commission in 2013 with strategic and economicinterests converging, two-way trade and investment increasing, and more regularbilateral visits occurring. In line with Australia's Foreign Policy White Paper and India's Act East Policy, both Ministers reconfirmed their commitment to an Indo-Pacific region which isopen, prosperous and inclusive and where countries behave in accordance withinternational rules and norms. The Ministers underlined the importance of openmarkets to facilitate the free flow of trade, capital and ideas and expressedtheir support for regional economic integration that is open and inclusive.
  3. The Ministers acknowledged the growth in two-waytrade, driven by the many points of intersection between our economies. Indiawas now Australia's fifth largest trading partner. In 2017, two-way trade in goods andservices was AUD27 billion (compared to AUD16 billion in 2013)and two-wayinvestment was AUD29 billion (compared to AUD18 billion in 2013). Nevertheless,both Ministers recognised the bilateral economic relationship could now extend toeven greater heights.
  4. Mr Peter Varghese AO briefed the Ministers on his report– An India Economic Strategy to 2035. Thereport sets out a planto unlock the opportunities that can help Australia in its engagement withIndia. It explores how to build on existing economic collaboration in keysectors and States in India, while identifying new ways to do business.
  5. Ministers discussed how mutual strengths could contribute to India's economicmodernisation agenda and priorities. Ministers also shared lessons learned fromtheir respective reform journeys, including on GST implementation, competitionpolicy and asset recycling. Ministers agreed to discuss the report further as theAustralian Government develops its response, including consideration of joint initiativesin education, agribusiness, resources and tourism, amongst others.
  6. Creating a conducive businessenvironment and identifying opportunities, while being pragmatic about thechallenges is crucial to updating business perceptions in both countries.Minister Prabhu outlined key reforms that are improving the ease of doingbusiness in India.
  7. Minister Ciobo highlighted the positive impact ofgrowing people-to-people links, pointing to the contribution of the Indianorigin community to Australia's economy and multicultural fabric. Ministersnoted that the Indian diaspora offers a window into each other's country and cancontemporise perceptions in a way government cannot.
  8. Ministers underscored the critical role of the privatesector. They discussed the importance of Australian and Indian businesses engagingdirectly to identify practical solutions and advocate to government. Ministersreflected on the success of Australian Business Week in India (ABWI) in connectingAustralian businesses with contacts in India. Similarly, the Australia-IndiaCEO Forum provided a useful vehicle for government to hear from businessleaders. Ministers agreed to work towards convening both events in the future.
  9. Ministersacknowledged the benefits of increasing two-way investment. Foreigninvestment promotes competition and exposes local businesses to internationalstandards and best practices. It remains a key pathway to enjoying higher ratesof economic growth, employment and standards of living than can be achievedfrom domestic capital alone. Ministers agreed to increased two-way businessdelegation activity, including in the short term bringing a high level businessdelegation to India focused on infrastructure, logistics and aviation.
  10. Noting that business will continue to makeinvestment decisions on commercial grounds, Ministers agreed that governmentcan help with market familiarisation and can bridge knowledge gaps that existin both countries. Ministers discussed mutual market accessissues in both countries. Ministers acknowledged progress had been made, andagreed to continue work on the outstanding issues.
  11. Both Ministers agreed that sharedprosperity and growth prospects are best served by an open, global tradingsystem and a rules-based international order.Australia and India are working to secure the timely conclusion ofa high quality and mutually beneficial Regional Comprehensive EconomicPartnership (RCEP). RCEP can send a clear message of commitment to anintegrated region and boost regional economic confidence in a time whenprotectionist sentiments appear to be rising – but to do so it needs to delivercommercially meaningful outcomes. The Ministers also reaffirmed theircommitment to the conclusion of a high quality Comprehensive EconomicCooperation Agreement (CECA).
  12. Ministers undertook to strengthen cooperation across regionaland multilateral institutions. They committed to work together to improve thefunctioning of the WTO, including its negotiating, monitoring, and disputesettlement functions, to address challenges facing the system. Ministers agreedto work together to ensure timely and effective enforcement of WTO rules.
  13. Ministers agreed that in the wake of increasing global protectionism the G20 has played avery important role in ensuring that members do not resort to protectionism.They were of the view that this role of G20 should be further strengthened.
  14. Ahead of the next Joint Ministerial Commission, Ministers agreedto:
    • hostthe next Australia-India CEO Forum in Australia;
    • worktowards hosting an Australian Business Week in India in 2019;
    • establishthe new Australian Consulate-General in Kolkata;
    • supportrespective grains and pulses industry bodies to engage in practicalcollaboration to increase market information and minimise future risks;
    • continueto use funding for the Australia-India Strategic Research Fund to furtherAustralia and India's joint collaboration in science and innovation;
    • greatercollaboration between Austrade and Invest India culminating in the signing of amemorandum of understanding to facilitate bilateral investment flows;
    • relyon the newly negotiated air services arrangement as a foundation to encourageincreased direct flights between Australia and India.

Signed 25 June 2018Canberra, Australia

Mr Suresh Prabhu, Minister for Commerce and Industry and Civil Aviation, Government of India

Mr Steven Ciobo, Minister for Trade, Tourism and Investment, Government of Australia

Attachment

Australia-India Joint Ministerial Commission, 15th Session - Signed Joint Statement [PDF 335 KB]

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