Assignment Code: MPSE-013/Asst/TMA/2023-24

Course Code: MPSE-013

Assignment Name: Australia’s Foreign Policy

Year: 2023-2024

Verification Status: Verified by Professor

Answer five questions in all, selecting at least two questions from each section. Each question is to be answered in about 500 words. Each question carries 20 marks.

SECTION- I

Q1) Explain the Australian-India economic and security operations since 1990s.

Ans) The economic and security relationship between Australia and India has experienced significant growth and diversification since the 1990s, marked by several key developments:

a) Economic Relations:

1) Trade and Investment: Bilateral trade between Australia and India has expanded substantially. Both countries have worked towards enhancing economic cooperation, signing various agreements to facilitate trade and investment. Both nations are members of the Comprehensive Economic Cooperation Agreement (CECA), aiming to deepen economic ties.

2) Commodity Trade: India is a significant market for Australian exports, particularly in sectors like minerals (coal, iron ore), education services, agricultural products (pulses, wool), and energy resources. Meanwhile, India exports items like textiles, gems, and IT services to Australia.

3) Investment and Business Ties: There's been an increase in two-way investment, with Australian companies investing in India's sectors such as education, mining, and infrastructure, and Indian firms investing in Australia's resources, energy, and technology sectors.

b) Security Cooperation:

1) Strategic Dialogues: Both nations engage in regular strategic dialogues to address shared security concerns. These dialogues encompass discussions on counter-terrorism, maritime security, defense cooperation, and regional stability.

2) Military Exercises: Australia and India conduct joint military exercises to enhance interoperability and cooperation between their armed forces. These exercises aim to strengthen bilateral defense ties and promote regional security.

3) Quad Partnership: Both countries are members of the Quadrilateral Security Dialogue (Quad) alongside the United States and Japan. The Quad focuses on regional security and cooperation in the Indo-Pacific, addressing issues like maritime security, disaster relief, and promoting a rules-based order in the region.

4) Security Cooperation in the Indo-Pacific: Australia and India share concerns regarding the strategic dynamics in the Indo-Pacific region. They collaborate on initiatives aimed at maintaining peace and stability, promoting free and open navigation, and addressing challenges posed by emerging geopolitical shifts.

Q2) What are the main constituents to Australia foreign policy?

Ans) Australia's foreign policy is guided by several key constituents that shape its approach to international relations. Here are the main components:

a) Alliance and Security:

1) Alliance with the US: Australia's close alliance with the United States is a cornerstone of its foreign policy. This alliance, formalized through the ANZUS treaty, underscores defense cooperation, intelligence-sharing, and strategic alignment.

2) Regional Security: Australia places a strong emphasis on regional stability and security in the Indo-Pacific region. It actively engages in regional forums like ASEAN (Association of Southeast Asian Nations) and initiatives such as the Quad to promote regional cooperation, security, and resilience.

b) Economic Engagement:

1) Trade and Economic Partnerships: Australia's foreign policy prioritizes economic engagement. It seeks to expand trade, investment, and economic cooperation with key partners worldwide, focusing on fostering economic growth and diversifying trade relationships.

2) Free Trade Agreements: Australia pursues bilateral and multilateral free trade agreements (FTAs) to enhance market access, reduce tariffs, and facilitate trade and investment flows. Agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and agreements with key partners like China, Japan, and South Korea exemplify this approach.

c) Multilateral Engagement:

1) Global Governance and Multilateralism: Australia actively participates in multilateral organizations such as the United Nations (UN), G20, WTO (World Trade Organization), and various regional forums. It aims to contribute to global governance, promote rules-based international order, and address global challenges such as climate change, human rights, and health issues.

2) Development Assistance: Australia provides development assistance and engages in aid programs to promote economic growth, poverty reduction, and stability in the Asia-Pacific region and beyond. It supports initiatives focused on education, health, governance, and infrastructure development in developing countries.

d) Values and Diplomacy:

1) Promotion of Values: Australia's foreign policy emphasizes values such as democracy, human rights, the rule of law, and freedoms. It actively engages in diplomacy to promote and defend these values globally.

2) Diplomatic Relations: Australia maintains diplomatic relations with various countries worldwide, engaging in bilateral dialogues, cultural exchanges, and diplomatic initiatives to foster closer ties and address shared challenges.

e) Security and Defense:

1) National Security: Australia's foreign policy is intertwined with national security imperatives. It emphasizes strategic partnerships, intelligence-sharing, and defense cooperation to address security threats, including terrorism, cyber threats, and geopolitical tensions in the region.

2) Defence Modernization: Australia continuously invests in defense modernization and capability-building to ensure national security and maintain its strategic posture in the Indo-Pacific region.

Q3) What are the main cases of economic cooperation between Australia and India? Elaborate.

Ans) Australia and India have engaged in various economic cooperation initiatives across multiple sectors, aiming to strengthen bilateral trade, investment, and economic ties. Here are some key cases:

a) Trade and Investment:

1) Commodities and Resources: Australia is a major supplier of resources to India, including coal, iron ore, and gold. Indian industries, particularly steel and energy, heavily rely on these imports, fostering a significant trade relationship.

2) Education Services: Australia is a popular destination for Indian students seeking higher education. The education sector has seen substantial growth, with Indian students contributing significantly to Australia's education exports and fostering people-to-people ties.

b) Comprehensive Economic Cooperation Agreement (CECA):

1) Bilateral Trade Agreement: Both countries have been negotiating a Comprehensive Economic Cooperation Agreement (CECA) aimed at boosting trade and investment. The CECA seeks to reduce tariffs, enhance market access, and facilitate economic cooperation in various sectors.

c) Technology and Innovation:

1) Science and Research Collaboration: Australia and India collaborate in science, technology, and research initiatives. Joint projects in areas like renewable energy, biotechnology, space research, and agriculture aim to foster innovation and knowledge exchange.

2) Startup Ecosystem: Both nations are fostering their startup ecosystems and promoting entrepreneurship. Collaborative programs and initiatives support startups, tech innovation, and knowledge sharing between Australian and Indian entrepreneurs.

d) Infrastructure and Connectivity:

1) Infrastructure Development: Australia has expertise in infrastructure development, while India presents significant opportunities for infrastructure projects. Collaboration in areas such as smart cities, transport, and renewable energy infrastructure offers avenues for cooperation.

e) Bilateral Agreements and Frameworks:

1) Strategic Partnership: The Comprehensive Strategic Partnership (CSP) between Australia and India, established in 2020, aims to deepen cooperation across various sectors, including trade, defense, education, and science.

2) Memoranda of Understanding (MoUs): Both countries have signed numerous MoUs covering areas like agriculture, water management, defense, cultural exchanges, and space cooperation, outlining specific frameworks for collaboration.

f) Regional and Global Engagement:

1) Indo-Pacific Cooperation: Australia and India share strategic interests in the Indo-Pacific region. Both nations collaborate in regional forums, such as the Quad (with Japan and the US), to promote regional stability, maritime security, and adherence to international laws.

2) Multilateral Engagements: Australia and India engage in multilateral organizations such as the G20, ASEAN, and the Indian Ocean Rim Association (IORA), advocating for regional cooperation, economic integration, and addressing common challenges.

SECTION- II

Write a short note on each part of the following questions in about 250 words.

Q4a) Trade Policy since 1990s

Ans) The evolution of trade policy since the 1990s has been marked by several significant shifts in Australia:

a) Economic Liberalization and Diversification:

1) Trade Liberalization: Australia embraced a policy of trade liberalization in the 1990s, reducing tariffs and dismantling trade barriers. It engaged in multilateral trade negotiations through the WTO, promoting free trade and market access.

2) Diversification of Trade Partners: Australia expanded its trade beyond traditional partners like the UK and the US to focus on Asia-Pacific economies, especially China, Japan, South Korea, and ASEAN nations. This diversification aimed to reduce dependence on a few markets and tap into the growth potential of emerging economies.

b) Bilateral and Regional Agreements:

1) Free Trade Agreements (FTAs): Australia pursued bilateral and regional FTAs to enhance market access and trade opportunities. Notable FTAs include agreements with the US, Japan, South Korea, China, ASEAN, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

2) Regional Integration: Active participation in regional forums like APEC (Asia-Pacific Economic Cooperation) and the East Asia Summit (EAS) aimed to promote regional economic integration, cooperation, and dialogue on trade-related issues.

c) Focus on Services and Innovation:

1) Services Trade: Australia increasingly emphasized services trade, particularly education, tourism, and professional services. It became a leading education export destination, attracting students from various countries.

2) Innovation and Digital Economy: Trade policy began addressing the digital economy, focusing on digital trade facilitation, e-commerce, and intellectual property rights to capitalize on technology-driven growth.

d) Challenges and Adaptation:

1) Globalization and Geopolitical Shifts: Australia navigated challenges arising from globalization, geopolitical tensions, and shifts in global economic dynamics, necessitating agile trade policies to adapt to changing circumstances.

2) Resilience and Supply Chains: Recent shifts in trade policy have emphasized building supply chain resilience, particularly in critical sectors like healthcare, agriculture, and technology, following disruptions due to the COVID-19 pandemic.

Q4b) China –Australia economic relations

Ans) China and Australia share a complex economic relationship characterized by trade interdependence, investment ties, and occasional tensions. Here's an overview:

a) Trade Relationship:

1) Trade Volume: China is Australia's largest trading partner, with significant bilateral trade in commodities. Australia exports minerals like iron ore, coal, and natural gas to China, meeting a substantial portion of China's raw material demands.

2) Dependency on Commodities: Australia heavily relies on China's demand for its commodities, making its economy susceptible to fluctuations in China's economic growth and policy shifts.

b) Investment and Business Ties:

1) Investment Flows: Both nations have substantial investment ties. Chinese investors have made significant investments in Australia, particularly in real estate, infrastructure, agriculture, and mining sectors. Meanwhile, Australian businesses also invest in China, especially in sectors like finance, agriculture, and manufacturing.

2) Technology and Innovation: Australia and China engage in technology and innovation exchanges, with collaborations in research, academic partnerships, and technology transfers.

c) Economic Tensions and Challenges:

1) Political Frictions Impacting Trade: The economic relationship faces challenges due to political tensions, including disputes over issues such as human rights, territorial claims, and allegations of espionage. These tensions have led to occasional disruptions in trade and strained diplomatic relations.

2) Strategic Diversification: Australia has sought to diversify its trade relationships, reducing dependency on any single market, especially China. Efforts have been made to strengthen ties with other Asian economies, the Indo-Pacific region, and traditional allies to mitigate economic risks.

d) Bilateral Agreements and Dialogues:

1) Free Trade Agreement (ChAFTA): The China-Australia Free Trade Agreement (ChAFTA) aims to enhance trade by reducing tariffs and increasing market access for goods and services between the two nations.

2) High-Level Dialogues: Both countries engage in high-level economic dialogues to discuss trade and investment issues, aiming to maintain open channels of communication and resolve disputes through diplomatic means.

e) Future Prospects:

1) Diversification Efforts: Australia is focusing on diversifying its export markets while maintaining economic ties with China, aiming to reduce vulnerability to fluctuations in the Chinese market.

2) Balancing Economic Interests and Geopolitical Concerns: Both nations face the challenge of balancing economic interests with geopolitical tensions, navigating complex relations while safeguarding their respective national interests.

Q5a) Taiwan issue and Australian policy

Ans) Australia's policy regarding Taiwan is guided by a complex interplay of strategic, economic, and diplomatic considerations, taking into account its relations with China and regional stability:

a) One-China Policy:

Adherence to One-China Policy: Australia officially recognizes the People's Republic of China (PRC) as the sole legal government of China. It acknowledges the PRC's position that there is only one China, and that Taiwan is an inalienable part of China.

b) Economic Relations:

Economic Ties: Despite its adherence to the One-China Policy, Australia maintains significant economic ties with Taiwan. Trade and investment between the two entities exist within the framework of Australia's broader economic interests in the region.

c) Strategic Alignment:

Security and Regional Stability: Australia views the security and stability of the Indo-Pacific region as crucial. It recognizes Taiwan's significance in the regional security architecture and seeks to maintain stability through peaceful means and dialogue.

d) Diplomatic and People-to-People Exchanges:

Unofficial Relations: Australia maintains unofficial ties with Taiwan through various avenues, including cultural, educational, and economic exchanges. These exchanges contribute to people-to-people connections and cooperation between Australia and Taiwan.

e) Balancing Act:

Strategic Ambiguity: Australia maintains a delicate balance between acknowledging the One-China Policy and engaging with Taiwan on non-official levels. It seeks to avoid exacerbating tensions between China and Taiwan while fostering productive relationships.

f) Recent Developments:

1) Shifts in Public Discourse: There have been shifts in public discourse and political rhetoric in Australia regarding Taiwan, reflecting growing concerns about regional security dynamics and the importance of safeguarding democratic values.

2) Enhanced Engagement: Australia has demonstrated an inclination toward enhancing ties with like-minded nations, including Taiwan, on issues such as trade, technology, and security, albeit within the boundaries of its One-China Policy stance.

Q4b) Tibet and Australian stand

Ans) Australia has maintained a nuanced stance on Tibet, balancing its interests in human rights, regional stability, and economic ties with China. Here are key points regarding Australia's position on Tibet:

a) Human Rights Concerns: Australia has expressed concerns about human rights violations in Tibet, including restrictions on religious freedom, cultural repression, and limitations on autonomy. It has called for China to engage in meaningful dialogue with Tibetan representatives to address these issues.

b) Support for Tibetan Autonomy: Australia has supported the concept of meaningful autonomy for Tibet within China, advocating for respect for Tibetan culture, language, and religious practices. It has encouraged China to engage in dialogue with Tibetan leaders to find a peaceful resolution that respects Tibetan rights.

c) Balancing Regional Stability: Australia acknowledges China's territorial claims over Tibet as part of its one-China policy, which is crucial for maintaining diplomatic relations and stability in the region. This approach aims to balance Australia's concerns for human rights with its broader relationship with China.

d) Economic Relations with China: Australia's stance on Tibet is influenced by its economic ties with China. As China is a major trading partner and a significant economic force globally, Australia navigates its stance on Tibet cautiously to avoid straining diplomatic relations.

e) Advocacy for Dialogue: Australia has consistently encouraged China to engage in substantive dialogue with the Dalai Lama or his representatives to address the grievances of Tibetans and seek a mutually acceptable solution. This approach aligns with Australia's broader stance on human rights and conflict resolution.