Australia, India Signs Interim Trade Deal

India and Australia have signed an interim free trade deal on Saturday that cuts tariffs on billions of dollars of commerce.

Both countries are members of the Quad alliance with the United States and Japan, which is seen as a counterweight to an increasingly assertive China.

But while they both border the Indian Ocean, it's reported that India was only Australia's seventh-largest trading partner in 2020, and accounted for just over 4% of its exports last year.

The Economic Cooperation and Trade Agreement was signed simultaneously in New Delhi and Canberra by India's Commerce Minister, Piyush Goyal and his Australian counterpart, Dan Tehan in a joint ceremony.

Goyal said; "India and Australia are natural partners, connected by shared values of democracy, rule of law and transparency."

"Our relationship rests on the pillars of trust and reliability aptly reflected in our deepening geostrategic engagement through the QUAD and the supply chain resilience initiative."

Australian Prime Minister, Scott Morrison also said; "The agreement delivers a clear message that democracies are working together and ensuring the security and resilience of our supply chains."

India's Prime Minister, Narendra Modi added that it would contribute to increasing supply chain resilience and the stability of the Indo-Pacific region.

Negotiations on a comprehensive deal between India and Australia were launched more than a decade ago but stalled in 2015.

A full trade pact is now being negotiated and Morrison, who called Modi a "dear and trusted friend," said he hoped it would be signed by the end of the year.