As India and Australia deliberate on ongoing negotiations for a more comprehensive trade deal, a recent parliamentary report from Australia has cast a shadow over the existing India-Australia trade agreement, citing concerns over child labour practices in India.
The report, submitted to Australian lawmakers, questions the alignment of the 2022 India-Australia trade deal with Canberra's policy priorities, particularly in light of potential implications for labour and environmental standards.
Signed during the tenure of former Australian Prime Minister Scott Morrison, the trade deal aimed to strengthen economic ties between the two nations by eliminating duties on a significant portion of Indian exports to Australia.
However, the parliamentary committee's report highlights a fundamental issue: the absence of recognition of international labour rights in the trade agreement.
It recommends against entering into trade agreements with countries that violate these rights and suggests incorporating a labour chapter aligned with commitments to the International Labour Organization's core conventions.
Central to the concerns raised in the report is India's documented issue of child and forced labour, which the committee views as conflicting with Australia's policy objectives.
It warns against trade agreements that potentially enable lower labour and manufacturing standards, preferential migration flows, and increased imports with reduced environmental standards.
While the report stresses on humanitarian concerns, some trade economists caution against the immediate imposition of international labour standards in trade agreements.
They argue that such measures could have unintended consequences, leading to a reduction in overall economic welfare, both in developing and developed nations.
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