During a virtual summit last week, Indian Prime Minister Narendra Modi and Australian PM Scott Morrison announced a joint decision to elevate the two countries’ relationship from a Strategic Partnership to a Comprehensive Strategic Partnership (CSP). The two leaders inked nine agreements, including the “Shared Vision for Maritime Cooperation in the Indo-Pacific” and a Mutual Logistics Support Agreement (MLSA). All in all, Modi and Morrison signed nine agreements, comprised of two ‘bilateral strategic declarations’ on cooperation in the Indo-Pacific and seven other pacts.
As part of the MLSA, the two countries agreed to share each other’s bases for repair and refueling of ships and aircraft. India already holds similar agreements with the US, France, and Singapore. The agreement ostensibly aims to “increase military inter-operability through defense exercises” and “defense cooperation”. The two countries have held three bilateral naval exercises, labeled AUSINDEX, since 2015, with the last one being held in the Bay of Bengal in April 2019.
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The MLSA is seen as an additional measure to counter a rising Chinese threat and presence in the Indo-Pacific region and comes amidst border tensions between India and China along the Line of Actual Control (LAC). With the agreement, India has once again signaled its alignment with the “Quad” of Australia, the United States (US), and Japan in maintaining a “rules-based order” in the Indo-Pacific. Modi said, “This is important not only for our two countries but also for the Indo-Pacific region and the world.”
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In fact, Australia has been mired in a war of words with China and been at the receiving end of economic coercion and retaliation. China has placed tariffs on Australian exports of barley and blacklisted several slaughterhouses. It is also considering stricter quality checks, anti-dumping probes, tariffs, and customs delays on a host of other Australian imports, including wine, dairy, seafood, oatmeal, and fruit. This is in response to the Morrison government’s calls for an international investigation into the origins and spread of the coronavirus and into China’s culpability and complicity.
Australia is also opposed to increased Chinese presence and hostilities in the South China Sea (SCS). It recently conducted a joint maritime exercise with three US warships in the sea after China entered Malaysia’s exclusive economic zone (EEZ).
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During the summit, PM Modi said, “It is our sacred responsibility to uphold and protect the values of global welfare, such as Democracy, Rule of Law, Freedom, Mutual Respect, Respect for International Institutions and Transparency, etc. Today, when these values are being challenged in different ways, we can strengthen them by strengthening mutual relations.” This echoed recent statements by Australian Foreign Minister Marise Payne, who has repeatedly raised concerns about China’s transparency.
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Keeping in line with India’s recent line of attack at bilateral and multilateral meets, both sides also made what appeared to be a thinly-veiled reference to Pakistan, when they “strongly condemned terrorism in all its forms” and called for the “investigation and prosecution of terrorist acts”.
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Australia also reaffirmed its “strong support for India to gain membership in the Nuclear Suppliers Group (NSG). Keeping in mind that Australia is a large supplier of uranium to India, the two countries also “reiterated their support for continued bilateral civil nuclear cooperation”. Australia also supplies other key strategic mineral resources to India, such as lithium and cobalt.
In addition, Australia also supported India’s bid for a permanent seat in the United Nations Security Council (UNSC)
Alongside strategic concerns, the two leaders also pledged to increase economic ties through the Economic Cooperation Agreement (ECA). Trade between the two countries in 2018-19 stood at roughly $21 billion. Australia’s investment in India comes to roughly $10.74 billion, while India has invested around $10.45 billion in Australia. It is hoped that the ECA will revive stalled and discarded negotiations on the Comprehensive Economic Cooperation Agreement (CECA) and the Regional Comprehensive Economic Partnership (RCEP).
In a mark of solidarity, the two leaders vowed to “increase the frequency of Prime Ministerial contact” through increased bilateral discussions and annual meetings at the margins of global events. The two countries also committed to holding “2+2” meetings between Foreign and Defence Ministers at least every two years. Morrison and Modi are slated to next meet at the G7 summit later this year, after US President Donald Trump called the composition of the group “very outdated” and indicated his plans to invite Russia, India, South Korea, and Australia to the next summit.
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