Advertisement

Australia brings vineyard diplomacy to India trade meet

Dairy remains a contentious issue as Australia and India negotiate a trade agreement, while wine is firmly on the table.

Sep 25, 2024, updated Sep 25, 2024
Trade Minister Don Farrell addresses the Australian Grape & Wine event at Penfolds' Magill estate. Photo supplied.

Trade Minister Don Farrell addresses the Australian Grape & Wine event at Penfolds' Magill estate. Photo supplied.

Trade Minister Don Farrell will use his South Australian vineyard to spruik the benefits of cheaper Australian wine to his Indian counterpart as they negotiate over a fine red.

Australia and India are working to boost investment in green energy, education and agriculture under a more fruitful trade agreement.

Senator Farrell announced $10 million in grants for Australian businesses, organisations and universities to spur cooperation with India after meeting Commerce Minister Shri Piyush Goyal in Adelaide on Wednesday.

They signed a memorandum of understanding on investment between Austrade and Invest India – government bodies that help facilitate trade opportunities for businesses.

India will set up an office in Sydney covering trade, investment, tourism and technology office to act as a bridge between investors and businesses on both sides of the Indian Ocean.

The two nations also continue negotiations over another trade pact that furthers a 2022 deal.

“We are very optimistic that the good work that was done today will result in an expanded agreement,” Farrell told reporters in Adelaide following a meeting with his counterpart on Wednesday.

“We’ve made it clear that we have much to offer our friends in India, particularly in agriculture.”

Agriculture remains a sticking point in trade negotiations, with New Delhi protective of millions of low-paid farmers wary of any threat to livelihoods from cheaper imports.

InDaily in your inbox. The best local news every workday at lunch time.
By signing up, you agree to our User Agreement andPrivacy Policy & Cookie Statement. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

The dairy sector was a red line with India refusing to open up the industry in numerous trade agreements with other nations, Goyal said.

He raised the example of dairy, saying it’s hard for Indian farmers who own an average of two to three acres with only three to four cows to compete with large Australian producers.

“It would be nearly impossible for these large farms and these small farms to compete with each other on a common footing,” he said.

Tariff removal on chickpeas, pistachios, apples and wine is on the table for the next agreement.

Farrell will bring a personal touch to his negotiations with Goyal when he takes him to his vineyard in the Clare Valley, perhaps hoping a smooth red will smooth things over.

About $30 billion of Australian imports have entered India without tariffs since a trade deal came into effect in November 2022, Farrell said.

Australians have also saved some $225 million at the checkout because of lower import tariffs.

Agricultural exports to India are up around 60 per cent to $1.6 billion.

AAP

Local News Matters
Advertisement
Copyright © 2025 InDaily.
All rights reserved.