We are seeking to realise India's potential, says Australia's Foreign Affairs Minister Julie Bishop

Prime minister Narendra Modi's rock star-like tour of Australia in November 2014 has undeniably whipped up euphoria in the land of kangaroos. While the next round of negotiations for the proposed bilateral trade treaty is slated to begin on July 1, negotiators from both countries are sweating it out. They have got just seven months to conclude, if they were to stick to their deadline, and pull off what they fondly call Comprehensive Economic Cooperation Agreement (CECA). Australia's foreign affairs minister Julie Bishop is excited about the bilateral relations. She spoke to a media delegation that included dna, currently on a visit to Australia, on a wide range of issues.

"The year 2014 was an important year for the bilateral relations between Australia and India," she said, adding that CECA will be the next milestone in the relationship. "We are hoping that it will be concluded by the end of this year. This is an opportunity for us to reaffirm our firm commitment to foster the economic ties."

For Australia, India is in the focus now. Is the slowdown in China, one of your most important markets, contributing to the change of focus?

No. We always had a focus on India. India has now demonstrated a willingness to engage. Prime minister Narendra Modi is the first PM to visit Australia in decades. We have so much common interests where we can work together. Modi's visit has reinvigorated the whole relationship.

The target set to conclude CECA agreement is 2015-end. Do you think it's too ambitious?

No, I believe we should be ambitious for such high quality agreements. We don't want to fail in our efforts because we were not ambitious enough. We have concluded (such deals with) China, Japan and Korea, in 18 months. At that time, people said we were ambitious. If there is political will on both sides, I think we will be able to achieve it. It will be for the benefit for our countries. I am aware that there is a political will on both sides and I am sure we can overcome challenges if there are any.
After Modi's visit to Australia, there has been a sudden rise in enthusiasm over the bilateral relationship…

The visit of Modi drew the attention of Australian public. He was exceedingly well received by Australian Indian public here. The visit energised the relationship and our two PMs were able to sign a number of agreements with which we can now build a much enhanced relationship. We are very pleased. It was the visit of the PM that catalysed the renewed enthusiasm for the bilateral relationship. There has always been so much potential, but now we are seeking to realise that potential.

How would you tackle non tariff barriers (NTBs) in the trade agreement, especially in agriculture sector?

There are always challenges in free trade agreements (FTAs). In the past, we have overcome such barriers with Japan and China. So it requires give-and-take on both sides. But the overall benefits are enormous -- not only on goods but also in services and investment. Another important area relates to visa.

Australia is moving from a mining-focused economy to a non-mining based economy. Is that impacting your foreign policies?

No. We are moving on economic growth based on capital investments in mining and resource-based projects. Those are moving from the construction to the production side. The impact (of Australia moving to a non-mining focused economy) is to this extend that Australia has global interests and we see that globe is our market place. We have a very ambitious trade agenda to ensure continuous trade with the existing partners and find new markets. We are diversifying the trade, particularly in services. About 70% of Australia's economy is made of services, but it contributes only 17% to our exports. So we hope to enhance exports of services. We have a high quality service sector across financial management, tourism, health and education, among others. Obviously, it is also sensible to have a more balanced export economy rather than having a focus on commodities that are subject to global price fluctuations.

Regarding the proposed joint military exercises with India, has China raised any opposition?

If China objects to Australia carrying out a joint exercise with India then we would invite them to be a part of the joint exercise with us. China has actually taken part in such exercises with the US and Australia. We encourage joint military exercises and if there were concerns expressed about it, we would engage China in such exercises with us. The proposed exercise with India is a bit also on technology exchanges, personnel exchanges. We hope that the strategic framework provides us to engage more closely.

Where does the dialogue on nuclear agreement stand today? There is a lobby working against it in Australia…

There is always a lobby in Australia when it comes to nuclear-related issues. The government is determined that we will conclude this agreement as soon as possible. It is currently going through the joint standing committee on treaties, it's a parliamentary process. There have been hearings in February and May and I expect a report in due course. Once that report is considered by the government we can conclude it, hopefully before end of this year.

India is always hungry for more electricity. Do you see any role for Australia to help India in its pursuit of energy?

I think CECA also gives an opportunity to enhance energy supply in terms of providing support to India. It will be an opportunity to give not only coal but LNG, uranium. Australia hopes to be a partner of choice in providing India with support. We are aware of India's energy needs and we are willing to be partner of choice.

With the rise of terrorism, how are you joining hands with other countries?

I believe that all nations have interest in defeating the rise of terrorism. Several countries have said that their citizens have become foreign country fighters. India has been a victim of terrorism, and it has had shocking experience in terms of terrorist attacks. In terms of sharing of intelligence, we have intelligence to share and I believe as a responsible global citizen India will continue to be part of the force seeking to defeat the rise of terrorism.

(The correspondent's visit to Australia was hosted by Department of Foreign Affairs and Trade of Australian government)