RE:What should I do if I lose the Chinese market? Australian Trade Minister: To India...
"qatarflag published on 2021-01-06 09:36:20
China's wheat imports from Australia have fallen to their lowest level in nine years, the Daily Mail reported. China bought just 880 tons of Australian wheat in November, the lowest level since 2011, according to Australian statistics. Government analysts say it is the latest in a series of Australian goods that have been shut out of the Chinese market.Faced with the loss of a big customer in China, the Australian government has been looking for an alternative to the Chinese market, and Australian Trade Minister Dan Tyne has found a new trading partner in India. Mr Tyne has pledged to strengthen trade relations between Australia and India and has made the signing of a free trade agreement between the two countries a top priority. His comments were interpreted as of the Indian act, reciprocated because Indian industry association said in a previous report that Australia was India's ideal partner, think Australia can ensure that the Indian energy security, and to provide specialized knowledge in the field of technology, health and agriculture to support its economic growth plan.On June 4, 2020, Australian Prime Minister Morrison and Indian Prime Minister Narendra Modi signed an agreement in a video conference to elevate bilateral ties to the status of a "comprehensive strategic partnership." Although relations have improved, the relevant bilateral trade agreement, the Comprehensive Economic Cooperation Agreement, has been under discussion for nine years and has yet to bear fruit. Against the backdrop of deteriorating economic relations between China and Australia, Mr Tyne said it was time to return to the negotiating table with India. "India is a good friend of Australia and it would be in the interest of both sides to further strengthen our trade relationship," he told the Australian newspaper. It is in the national interest of both countries to reach a renewed agreement on comprehensive economic cooperation."Despite His confidence, Mr Tyne's ambitions are hard to sell in India. India has pursued highly protectionist economic policies for decades to protect its national enterprises with limited domestic competitiveness and its relatively unproductive agriculture. In a speech on December 27, 2020, Modi also publicly called on Indians to buy "made in India" products instead of "made in foreign countries" in the New Year to promote the "speak up for India" movement. Therefore, it is difficult for India to develop a mutually beneficial trade relationship as Expected by Tyne. India prefers to develop a more beneficial trade relationship for itself. Otherwise, the COMPREHENSIVE Economic Cooperation Agreement will go nine years without a result.India's attitude to free trade will also be illustrated by a big event in 2020. In November 2020, 15 countries, including China and Australia, signed the Regional Comprehensive Economic Partnership (RCEP), while India, which participated in 28 rounds of negotiations, withdrew from the RCEP negotiations in 2019 to protect its farmers, dairy producers, fishermen and small and medium-sized business owners. By rights, Australia should know better than to be sanguine.For its part, India, bucking the trend of free trade, also needs to embrace Australia. The Confederation of Indian Industry believes that India has chosen not to join RCEP and that it is more necessary to build a strong bilateral partnership with Australia to seize economic opportunities. But what Indians mean by "economic opportunity" is probably at odds with what Australians mean by "economic opportunity". India, with its policy of self-reliance and focus on protecting national industries, certainly wants to increase exports to Australia more. Australia is willing to strengthen economic and trade ties with India, which has a population of more than 1.3 billion and is seen as a potential market.The question is, is the Indian market really that important to Australia compared to China? The figures are the most telling. According to the data of The Australian Bureau of Statistics, In 2019, China was Australia's largest export target country, with its exports to China reaching 103.435 billion US dollars, accounting for 38.09% of its total exports, and its trade surplus with China was 48.383 billion US dollars. In 2019, Australia's exports to India were $9.843 billion, or 3.62% of its total exports, and its trade surplus with India was $6.599 billion. In the face of such a contrasting set of figures, it is not clear why Australian officials are confident that the Indian market will replace the Chinese market.India may become an important export destination for Australian goods after years of development, but it will not solve the pressing problems of Australian companies. For example, the Australian timber industry, which was recently suspended by China over quarantine issues, is already feeling "pain". The CHIEF executive of the Australian Forest Products Association, Ross Hampton, said thousands of Australian jobs were at risk if the timber ban was not resolved.For Australia, the reality is absurd. On the one hand, Australia is struggling to find alternatives to The Chinese market. On the other hand, a number of countries across the continent, including some of Australia's strongest Allies, are moving to fill the gap left by Australia in the Chinese market by increasing exports of grain, coal, wine and other commodities to China.It is time for some Of Australia's politicians to wake up and indulge in absurdist fantasies that do nothing for the well-being of their people."