Committed to conclude CECA talks later this year: Australia trade minister

Tim Ayres talks about the trade agenda for the G20 meet, carbon tax and ongoing bilateral free trade talks

Australia’s Assistant Minister for Trade TIM AYRES is in India for the ongoing Group of Twenty (G20) trade and investment ministers’ meeting and the Business 20 Summit later this week. In an email interview with Shreya Nandi, Ayres discusses the trade agenda for the G20 meeting, carbon tax, and ongoing bilateral free trade talks. Edited excerpts:

How are the India-Australia Comprehensive Economic Cooperation Agreement (CECA) talks progressing? When can we expect the agreement to be finalised?
 

Australia and India have resumed negotiations for a CECA. Five rounds of meetings have taken place since the Australia-India Economic Cooperation and Trade Agreement entered into force on December 29, 2022. Australia remains committed to concluding a CECA later this year.

Will Australia push for market access in dairy and other farm products under CECA? What are Australia’s other key demands?

As a significant producer of high-quality agricultural goods, Australia is collaborating with India to improve market access for its farmers and food industries. We understand that agriculture is a vital industry for India, but we are advocating that Australia’s reliable and high-quality produce can play a pivotal role in improving India’s food security and boosting its food processing sector.

India recently imposed curbs on the imports of laptops, tablets, personal computers, etc. How does Australia view this?

Australia is not a major exporter of these goods, and I don’t anticipate that these licensing requirements will significantly impact the Australian industry. All World Trade Organization (WTO) members have an obligation to ensure that their regulations are transparent, applied in a non-discriminatory manner, and are not excessively trade-restrictive to achieve legitimate objectives.

Increasingly, countries have been considering imposing a carbon tax and similar levies such as the Carbon Border Adjustment Mechanism by the European Union (EU). What are Australia’s views on this?
 

Australia firmly believes that trade and investment are integral to addressing climate change. We are actively exploring and pursuing multilateral and plurilateral solutions to climate-related trade issues.

We are working with the European Commission to mitigate the impact of the EU’s Carbon Border Adjustment Mechanism on Australian businesses. We are encouraging the Commission to avoid intricate and costly regulatory and compliance requirements for the industry and instead continue to work through multilateral fora like the Organisation for Economic Co-operation and Development and WTO to support global approaches.

If trade-exposed industries relocate primarily due to different levels of climate ambition, this carbon leakage undermines climate action, affecting trade and investment and jobs.

As part of recent consultations with the industry to ensure our largest emitters contribute to play their part in meeting our 2030 climate targets, the Australian government has committed to reviewing the risks of carbon leakage, particularly for the cement and steel industry, and developing policy options for Australia.

We will closely consult with our international partners, including India, to understand their perspectives on these issues. We must create the right environment for trade and investment in low-emissions-intensive goods and the services that support them.

What are Australia’s key proposals for WTO reforms under the G20 Trade and Investment Ministerial?
 

The G20, under India’s Presidency, can play a crucial role in providing continuous political support for WTO reform to spur reform discussions underway in Geneva, in advance of the WTO’s 13th Ministerial Conference next February. Specifically, Australia aims to see the G20 lend its support to fixing the dispute settlement system.

The 13th Ministerial Conference is rapidly approaching, necessitating the generation of momentum and focus on delivering reform outcomes.

Amid a diplomatic tussle between the West and Russia over the war in Ukraine, do you anticipate a joint communiqué at the end of the G20 trade ministers’ meeting?
 

G20 trade and investment ministers are convening during a period of global complexity, marked by geo-strategic competition, disruptions to global markets, and threats to food and energy security.

Australia will continue to work with partners to reiterate our condemnation of Russia’s illegal and immoral invasion of Ukraine. We are deeply concerned about the global ramifications of Russia’s war, exacerbating fragilities in the global economy and trading system. This includes Russia’s termination of the Black Sea Grain Initiative and attacks on Ukrainian agricultural infrastructure, which are driving up food prices and impacting the most vulnerable.

Australia has cooperated closely and constructively with India as the Chair, along with other G20 members, to establish policy consensus across G20 ministerial meetings. Despite these challenges, we will strive for a joint communiqué at the G20 trade and investment ministers’ meeting. India has our firm support in this endeavour.

What role will G20 nations play in making trade fairer and more inclusive?
 

All G20 members rely on international trade for their prosperity. We share a common interest in ensuring that trade benefits are accessible to and shared by everyone, and Australia welcomes India’s focus on inclusive trade.

G20 members can enhance fairness and inclusivity in trade by strongly supporting the reform of the rules-based multilateral trading system, with the WTO as its core.

The WTO provides a stable, predictable framework for all 164 members, regardless of size or gross domestic product, to trade and hold each other accountable when rules are violated.