CHECK AGAINST DELIVERY EMBARGOED UNTIL DELIVERY
SPEECH BY THE PRIME MINISTER
INDIA-AUSTRALIA JOINT BUSINESS COUNCIL
NEW DELHI 10 FEBRUARY 1989
* This is the third time the India-AustraLia Joint Business
Council has met.
Previous meetings, hel. d in 1987 and P988, have witnessed a
substantial and long-overdue expansion in trade between our
two countries. Indeed those meetings have been a significant
cause of that growth.
Because whenever business people of this calibre get
together, with the spirit of constructive endeavour that
characterises this Council, then the result can only be
better communication, greater understanding, more
co-operation in short, a more productive environment for
the expansion of our commercial ties.
But as you begin this third meeting, we are justified I
believe in saying that we are on the verge of an
unprecedented improvement in the volume and diversity of
trade between us over the next few years.
My confidence in making this prediction is based on two key
factors.
First, the very positive atmosphere in which my talks with
the Indian Government, includinq Prime Minister Gandhi, are
taking place, is creating the best possible framework for
closer economic co-operation.
And second, the endeavour, commitment and capacities of the
corporations represented here today shows as never before a
determination to seek out new opportunities in Australia and
India. At the outset I want to pay tribute to our Indian hosts today
and in particular to acknowledge the vital contribution
played by my good friend Rajiv Gandhi.
His visit to Australia in late 1986 gave a real boost to what
had previously been a stunted commercial relationship between
US. It was during that visit that Mr Gandhi and I agreed to
establish this Joint Business Council, in order that we could
explore the opportunities that exist for business and trade.
Since that time, two way trade between our two countries has
grown steadily. Last year, 1987--88, it totalled nearly three
quarters of a billion dollars a 17 per cent increase on the
previous year.
But it is apparent that we can still do a great deal more
than we are doing at present. Relative to its enormous
potential, the volume between us is still very small. And we
should diversify our trade beyond the commodities regime that
has traditionally dominated our commercial links.
In our talks yesterday, Prime Minis. ter Ghandhi and I agreed
on a new series of measures designed to achieve these goals.
We agreed on a significantly enhanced development
co-operation program, which should stimulate two-way
commercial opportunities.
We hope shortly to conclude a Concessional Finance Agreement,
which will benefit development projects undertaken by
Australian firms in India.
We will sign today Memoranda of Understanding on
Telecommunications, Meteorology and Railways.
And we agreed to renew efforts to conclude a Double Taxation
Agreement. In addition, over the coming year, Australia will be staging
a display of Indian engineering products in Sydney and
Melbourne in September; and hosting a mission to Australia of
Indian automobile part manufacturers.
When you think of Australia you may well think of wool,
wheat, gold, coal, iron ore. We produce all these and we
produce them more efficiently and competitively than any one
elIse. We'll continue to do so.
But in the future I want people also to think of Australia as
a source of telecommunications and other high-tech products,
education services, value added commodities, consultancy and
financial services a broad range of manufactured and
service products which we can provide to our overseas trading
partners and which we want to provide.
In this regard Australia and India suffer from similar
misperceptions held about us by other nations.
We have been successful commodity producers in the past so
successful in fact that our more recent achievements in
diversifying our economies to encompass a greater
manufacturing base are not so well recognised.
We have to rectify that misperception.
So it is with great interest that I note that Indian firms,
too, have moved away from the more traditional exports of
textiles, clothing and footwear and tea and coffee to, among
other things, chemicals, computer software and car parts.
These changes are partly in response to the reforms both our
Governments have undertaken since 1984 to liberalise trade
and industrial policies: these include a restructuring of
the tax system; adoption of a more flexible exchange rate
policy; and significant tariff reform.
So as our two economies continue to restructure there will be
obvious opportunities for us both.
You in the Council are working hard to identify prospects for
further profitable collaborations, in such fields as computer
software, telecommunications, food processing and mining
equipment. It is your members who provide the real engine
for growth in our trade and economic relations.
Over the last 12 months some Australian corporations White
Industries, Olex, Redecon, OTC, Telecom Australia
International, to name a few have made concerted efforts to
secure major project work in India.
Key projects like the Piparwar Coal Project are raising the
profile of Australian/ Indian trade and highlight the
complementarity between our two countries.
Let me say how delighted I am that the discussions between
our two Governments over the Piparwar project are now at such
an advanced stage. This will be a tremendous achievement in
its own right, and will give much encouragement to other
companies seeking to invest in major projects in both our
countries. I
Australia supports such endeavours by offering highly
competitive concessional finance packages through the
Australian International Development Assistance Bureau and
the Export Finance Insurance Corporation.
Other Australian corporations such as the National Australia
Bank and BHP Petroleum are to be congratulated for taking a
higher profile in India through the establishment of offices
here. I warmly welcome the decision by the Indian authorities to
allow the NAB to open a representative office here. This
Sevelopment will extend further the financial linkages
between our two countries.
There is increasing activity in India by AUSTRADE with the
aim of diversifying the economic relationship.
I also want to highlight, as an area for co-operation with
tremendous potential, the capacity for joint ventures between
Australian and Indian companies. Progress here would, I
know, be welcomed in both Australia and India.
In my discussions yesterday with your Commerce Minister
Mr Dinesh Singh, and also with Australian businessmen,
particular emphasis was placed on joint ventures in India.
Abundant skilled labour at very competitive wages could
combine well with Australian capital and expertise. Such
ventures could both tap the vast Indian market and use India
as a base for exports to the region and beyond.
SAlso highlighted in my discussions was Australia's world
recognised expertise in telecommunications, ports, energy,
mining and rail projects, and India's tremendous
infrastructure demand. One example of the latter is India's
envisaged expansion of its telecommunications network from
around 4 million lines at present to 20 million by the turn
of the century.
I mentioned at the outset my optimism for the future of
commercial relations between our two countries. We are
progressively building a relationship which will yield real
and lasting benefits to us all.
I cannot leave this topic however without pointing to one
important factor which must qualify any optimistic
predictions made about the future of trade.
Whatever nations such as Australia and India may do to build
bilateral links, we also have the essential task of
protecting the multilateral trading system.
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Entrenched and increasing protectionist measures by the major
developed economies are threatening the very foundations of
the GATT system which fostered four decades of post-war
global trade and prosperity.
As was unfortunately demonstrated at the recent Montreal
mid-term review, the intransigence of the United States and
the European Community on the issue of agricultural
protectionism has threatened the entire Uruguay Round.
As agricultural producers, Australia and India have a
fundamental interest in ensuring that the Uruguay Round
succeeds.
We must continue the campaign to pressure major economies
into a more flexible approach on an issue of fundamental
importance to our future prosperity.
Ladies and gentlemen,
In closing I pay special tribute to all of you from Australia
and India who have taken up the challenge of entering each
other's markets.
Other aspiring Australian and Indian businesses would do well
to look closely at how you have succeeded, and apply the
lessons to their own operations.
The deliberations of the Council go to the heart of the
commercial relationship.
In inaugurating this the third meeting of the India-Australia
Joint Business Council, I wish you every success in your
discussions and in your work in the years ahead.
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