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AAP
AAP
Politics
Dominic Giannini

Australia brings vineyard diplomacy to India trade meet

Australia's trade minister plans to use a bit of vineyard diplomacy to get momentum on tariff talks. (Joel Carrett/AAP PHOTOS)

Trade Minister Don Farrell will use his vineyard to spruik the benefits of cheaper Australian wine to his Indian counterpart as they negotiate over a fine red.

Australia and India are working to boost investment in green energy, education and agriculture under a more fruitful trade agreement.

Senator Farrell announced $10 million in grants for Australian businesses, organisations and universities to spur co-operation with India after meeting Commerce Minister Shri Piyush Goyal in Adelaide on Wednesday.

Don Farrell and Shri Piyush Goyal
Trade Minister Don Farrell and his counterpart Shri Piyush Goyal met to discuss trade arrangements. (Matt Turner/AAP PHOTOS)

They signed a memorandum of understanding on investment between Austrade and Invest India - government bodies that help facilitate trade opportunities for businesses.

India will set up an office in Sydney covering trade, investment, tourism and technology office to act as a bridge between investors and businesses on both sides of the Indian Ocean.

The two nations also continue negotiations over another trade pact that furthers a 2022 deal.

"We are very optimistic that the good work that was done today will result in a an expanded agreement," Senator Farrell told reporters in Adelaide following a meeting with his counterpart on Wednesday.

"We've made it clear that we have much to offer our friends in India, particularly in agriculture."

Minister for Trade and Tourism Don Farrell
Don Farrell says Australia has a lot to offer India, particularly in agricultural products. (Matt Turner/AAP PHOTOS)

Agriculture remains a sticking point in trade negotiations, with New Delhi protectionist about millions of low paid farmers wary of any threat to livelihoods from cheaper imports.

The dairy sector was a red line with India refusing to open up the industry in numerous trade agreements with other nations, Mr Goyal said.

He raised the example of dairy, saying it's hard for Indian farmers who own an average of two to three acres with only three to four cows to compete with large Australian producers.

"It would be nearly impossible for these large farms and these small farms to compete with each other on a common footing," he said.

Indian Minister for Commerce and Industry Shri Piyush Goyal
Dairy is a definite sticking point, Indian Minister for Commerce Shri Piyush Goyal said. (Matt Turner/AAP PHOTOS)

Tariff removal on chickpeas, pistachios, apples and wine is on the table for the next agreement.

Senator Farrell will bring a personal touch to his negotiations with Mr Goyal when he takes him to his vineyard in South Australia's Clare Valley, perhaps hoping a smooth red will smooth things over.

About $30 billion of Australian imports have entered India without tariffs since a trade deal came into effect in November 2022, Senator Farrell said.

Australians have also saved some $225 million at the checkout as a result of lower import tariffs.

Agricultural exports to India are up around 60 per cent to $1.6 billion.

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