India a threat to no one: Abbott

Prime Minister Tony Abbott says India has an impeccable record as a global citizen and can be trusted with Australian uranium.

The Taj Mahal hotel in Mumbai burns during a terror attack.

The Taj Mahal hotel in Mumbai was one of several locations targeted in the 2008 terror attacks. Source: AP

Tony Abbott has defended a foreshadowed agreement to sell uranium to India, describing the South Asian nation as a "model citizen" with peaceful ambitions.

The prime minister is expected to sign a long-awaited nuclear safeguards agreement with his counterpart, Narendra Modi, in New Delhi on Friday.

The deal would allow Australia to start shipping its abundant reserves of uranium to the subcontinent, which is struggling to meet its vast energy needs.

It's a controversial move because India has refused to sign the Nuclear Non-Proliferation Treaty, which ensures uranium is used for civilian energy purposes and not weapons.

But Mr Abbott said it signalled trust with the "world's emerging democratic superpower".

"India has an absolutely impeccable non-proliferation record," he told reporters in Mumbai on Thursday.

"India has been a model international citizen. India threatens no one."

But when asked how Australia could guarantee India used its uranium as promised, Mr Abbott declared: "It's not our job to try to tell India how to conduct its internal affairs."

The Australian Greens condemned the deal, warning uranium wasn't any ordinary commodity.

"It is a strategic mineral and a trade that Australia should be getting out of," Greens senator Scott Ludlam said in a statement.

Australia's refusal to sell uranium to India has been a sore point between the nations for years.

Former prime minister John Howard first gave in-principle support to the idea, but Kevin Rudd promptly rescinded the agreement once elected to the office.

It was Julia Gillard during her tenure who convinced Labor in 2011 to overturn its ban on uranium sales to India, and negotiations for a safeguards deal began the following year.

India already buys almost $5 billion worth of Australian coal every year, but is keen to supply more of its energy needs from its 21 nuclear reactors.

The Abbott government wants to capitalise on trade opportunities with the new administration of Mr Modi, who made energy security a key plank of his reform platform.

Two-way trade with India is worth $15 billion - about one-tenth of that conducted with China, Australia's top trading partner.

Mr Abbott has confessed that Australia hasn't invested enough time and energy in the subcontinent compared with the markets of North Asia.

"Our attention was elsewhere," he told reporters in Mumbai.

"Just think what could be achieved between Australia and India if there had been the same focus here as there has been there."

He brought a top business delegation to India's financial capital Mumbai to explore new trade and investment opportunities with Australia's fifth biggest export market.

The government's top trade priority still remains, however, a free trade deal with China, which it's confident will be inked by the end of the year.

Mr Abbott will begin the official bilateral phase of his visit in New Delhi on Friday.


Share

3 min read

Published

Updated


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world