Australia strengthens ties with India as relations with China continue to deteriorate – as Scott Morrison makes a subtle jibe that the country wants to deal with 'trusted friends'
- Australia and India grow closer with a Comprehensive Strategic Partnership
- The agreement aims to boost economic trade, regional security and technology
- Both countries have faced mounting pressure from China in recent months
- Scott Morrison said it was important to have 'trusted friends' in these times
Australia has strengthened ties with India as relations with its largest trading partner China continue to sour.
Prime Minister Scott Morrison and his Indian counterpart Narendra Modi signed off a new agreement in a virtual summit on Thursday.
It aims to boost economic trade between the two countries, build closer partnerships around science and technology and strengthen defence cooperation.
The Comprehensive Strategic Partnership comes as Chinese forces become more aggressive in the Indo-Pacific region, as well as slapping huge tariffs on Australian imports.
Prime Minister Scott Morrison (left) and his Indian counterpart Narendra Modi (right) signed off on a new Comprehensive Strategic Partnership in a virtual summit on Thursday
The agreement comes as Chinese forces become more aggressive in the Indo-Pacific region (pictured, Chinese People's Liberation Army soldiers wearing face masks on May 25)
With Australia and India both seeking to push back against China's encroaching presence, Mr Morrison said 'trusted partners' must work together.
'It is time for our relationship to go broader and deeper,' he said on Thursday.
'In a time like this we want to deal very much with friends and trusted partners.
'And this is a partnership which has stood the test, time and again, and is during the course of this current crisis.
'We share a vision for open, free, rules-based, multilateral systems in our region.
'Whether that is in the health area or it is in trade or other places. We engage in those as confident but sovereign nations.'
While Australia has faced a backlash from Beijing over calls for an independent international inquiry into the origins of coronavirus and the actions of the Chinese Communist Party, its relations with India have also eroded dramatically.
The two countries share the world's longest land border, with China also being one of India's biggest trading partner.
But in the past few months month tensions over disputed territory in the Himalayan Sikkim region once again flared up resulting in a mass buildup of troops in the mountainous area.
In May, China announced a 80.5 per cent levy on barley exports, after weeks of threatening to boycott Australian industries.
Australia sends between half and two-thirds of all its barley to China, making the tariff decision a massive blow to the $600 million a year industry.
India is Australia's eighth-largest trading partner and fifth-largest export market, according to the Department of Foreign Affairs and Trade.
Australian Prime Minister Scott Morrison (pictured) speaks to Indian Prime Minister Narendra Modi during the 2020 Virtual Leaders Summit
Two-way goods and services trade between India and Australia totalled $30.3 billion in the 2019 financial year, with coal and education Australia's main export drivers.
But under the Comprehensive Strategic Partnership, Prime Minister Modi expects those figures will increase even further.
He described the agreement as a 'new model of India-Australia partnership and a new model of conducting business'.
'We had an outstanding discussion, covering the entire expanse of our relationship,' Mr Modi said.
'With Comprehensive Strategic Partnership between India and Australia, we aspire to achieve yet new heights in our collaboration.'
Indian Prime Minister Narendra Modi (pictured) is seen on a conference screen during the 2020 Virtual Leaders Summit between Australia and India
A Chinese soldier (left) and an Indian soldier stand guard (right) are photographed together at a Chinese checkpoint at the disputed border region in the Himalayan Sikkim Valley in 2008
One of the big winners from the deal is expected to be Australian barley farmers who are looking to expand into new markets after one of their biggest buyers China slapped an 80 percent tariff on their product.
Other areas of focus will include the internet and maritime security.
'Australia and India are working together to promote an open, safe and secure internet, and to ensure critical tech does not pose risks to security and prosperity,' Australian Foreigh Minister Marise Payne said.
'(We) have also marked a major step forward in our security and defence relationship.
'Today we signed a wide-ranging maritime declaration committing our nations to supporting the rules-based order at sea in the Indo-Pacific region.'
Australia has faced a backlash from Beijing over calls for an independent international inquiry into the origins of coronavirus (pictured, a Chinese soldier at Tiananmen Square on May 28)
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