Prime Minister Narendra Modi and Australian Premier Tony Abbott are expected to discuss economic measures to improve bilateral trade from its current levels of about $15 billion, far lower than the targeted $40 billion, even as they work towards the FTA. The leaders will meet for talks on Tuesday in Canberra.
While the two sides haven’t made progress on the two outstanding agreements, on operationalising the civilian nuclear deal so as to provide India with Uranium, and of a free trade agreement being negotiated, officials said they hoped both would be signed in 2015.
South China Sea issue In the past year, Australia and India have also made common cause on the maritime navigability of the South China Sea, with India criticising China on the issue. However, officials said they don’t expect the issue to be highlighted during the bilateral meeting, especially given that Mr. Abbott and Chinese President Xi Jinping just announced on Monday a free trade agreement expected to boost their bilateral trade of $130 billion further. Australia and China have also upgraded their strategic partnership.
Mr. Modi’s will also address the Australian Parliament on Tuesday, the first Indian Prime Minister to do so. On Monday, addressing Australian MPs, Mr. Xi said China feels like the “Big guy in the crowd” who is criticised “for standing out”.
“The Chinese government is ready to enhance dialogue and cooperation to jointly maintain freedom of navigation and safety of maritime rules. Neither turbulence nor war serves the fundamental interests of the Chinese people,” Mr. Xi said.
Both Mr. Modi and Mr. Xi will travel to Fiji next, and separately address leaders of the Pacific Islands there.
