ON MARKS FOR POLL; INDIA TRADE DEAL
Nation on election alert
Prime Minister Scott Morrison is poised to call a Federal Election, with Saturday May 14 the date tipped. Electoral laws dictate that a Federal campaign must be at least 33 days. Next Monday, April 11, would be 33 days from an election on May 14. If last-minute legal action against Liberal pre-selections in New South Wales defers the calling of the election, May 21 presents as the next and last option for the Federal poll.
New trade deal for Indian market
Australia has signed a major trade agreement with India, removing a host of tariffs between the two countries and loosening a range of bi-lateral professional and working regulations. Under the agreement, tariffs will be eliminated over 10 years on between 85 per cent and 91 per cent of Australian goods exports to India, while 96 per cent of Indian goods imports will enter Australia duty-free. In addition, Australia will relax work restrictions on Indian holiday-makers and extend visa requirements for high-performing Indian science, technology, engineering and mathematics (STEM) graduates. In 2020, India was Australia’s seventh largest trading partner, with two-way trade valued at $24.3 billion.
Fuel imports eroding trade surplus
While budget surpluses remain elusive, Australia is still posting healthy monthly trade surpluses, with the Australian Bureau of Statistics recording a surplus of $7.45 billion, seasonally-adjusted, in February. The monthly surplus, however, fell by $4.3 billion as imports jumped, driven by major increases in fuels and lubricants. Tourism-related travel contributed to a recovery in services imports. In July 2021, Australia’s monthly trade surplus peaked at almost $13 billion, reflecting strong mineral and agricultural exports but lower domestic consumption.
Shadow Treasurer flags economic plan
Federal Shadow Treasurer Jim Chalmers has flagged a five-point plan to address skills shortages and reduce living costs, should Labor win next month’s election. In an address to the National Press Club, Dr Chalmers nominated cheaper energy and cheaper childcare, more free TAFE places, more domestic manufacturing, and greater investment in the digital economy. He said Labor’s plan would raise the productive capacity of the economy and lift the speed limits on growth, without adding to inflationary pressures. Dr Chalmers also claimed that issues around labour hire, the gig economy and casualisation had undermined wages for too long.
Major weapons boost for defence
On the eve of the Federal election campaign, the Morrison Government has announced two major developments to bolster weapons capability of the defence force. At a cost of $3.5 billion, it has approved the accelerated acquisition of a joint air-to-surface standoff missile extended range for the air force, the naval strike missile for the navy’s surface fleet and maritime mines to secure ports and maritime approaches. Defence Minister Peter Dutton also announced two strategic partners – Raytheon Australia and Lockheed Martin Australia – for the $1 billion Sovereign Guided Weapons and Explosive Ordnance Enterprise.
New Premier for Tasmania
Jeremy Rockcliff is expected to be the next Premier of Tasmania, after Peter Gutwein announced his resignation on April 4. Presently the Deputy Premier, Jeremy Rockcliff is originally a farmer from north-west Tasmania; he held the Health, Advanced Manufacturing and Defence Industries, and Mental Health and Wellbeing portfolios in the Gutwein government. Peter Gutwein took over as Premier in January 2020 and led the Liberals to a third term in May last year.