India and Australia have agreed to undertake a feasibility study into a Free Trade Agreement. The study is expected to be released in December 2008.
Like the other feasibility studies that have been undertaken into trade between Australia and other countries, AFTINET is concerned that this one will continue to be based on flawed assumptions and ignore all non economic impacts. Previous studies have assumed the immediate removal of all tariffs across all industries as well as the immediate re-employment of those who lose their jobs due to an FTA. Both of these assumptions exist outside of the reality of what will happen with any agreement.
This feasibility study will be the first study started under the new Labor government and will be the first chance for them to implement their election promise of undertaking independent assessments of the social, regional, environmental, and cultural impacts that an FTA would have. Further to this will be the tabling in parliament of Australia's aims and intentions out of any FTA.
Australia has already indicated that we are aiming for greater access to India's agricultural markets as well as seeing the implementation of the Hoda Committee's recommendations into mining. Indian farmers are suffering greatly from indebtedness with 90,000 farmers committing suicide between 1997-2005, one every 32 minutes. An FTA with Australia could see the regulatory space and assistance given to Indian farmers constrained significantly.
The Hoda Committee's recommendations into India's mining sector creates greater rights for investors whilst restricting accountability and environmental protection. The recommendations establish that there should be no environmental impact assessment for exploration and no public consultations for areas less than 50 hectares or renewal mining license. Such recommendations set a problematic tone that removes the public right to comment on current mining operations as well as alerting potential investments to the environmental impacts of their operation.
For more information see AFTINET's Submission to the feasibility study.
Return to India-Australia FTA Main Page.
Return to India-Australia FTA Resources Page.
Return to Front Page.
