Export Finance and Insurance Corporation (EFIC) , Australia’s export credit agency and its Indian counterpart, Export–Import Bank of India (Exim Bank India), have signed a cooperation agreement to help promote trade and investment deals involving Australian and Indian companies.
The Memorandum of Cooperation outlines general principles for collaboration between the two agencies.Under the agreement, EFIC and Exim Bank India will strive to identify and develop eligible projects involving trade and investment relationships of Australian and Indian companies where participation by both agencies might be bilaterally beneficial.
“The agreement might assist, for example, where an Indian importer needs to organise funding to purchase Australian goods, or where an Australian exporter needs to provide performance guarantees to an Indian buyer,” said Chang Foo, head of product management and risk transfer at EFIC.
The agreement reflects growing economic ties between the two countries. India recently overtook traditional markets such as the United States, the United Kingdom and New Zealand to become Australia’s fourth-larger export market.
The investment relationship between India and Australia has also been growing substantially in recent years.
“We look forward to identifying opportunities under the agreement which will further promote trade and investment between India and Australia, including possible joint activities in third countries,” authorities at Exim Bank India stated.
Exim Bank India and EFIC are also forging stronger regional links through their membership of the Asian Exim Banks Forum, which aims to enhance cooperation between the export credit agencies of Australia, China, India, Indonesia, Japan, Korea, Malaysia, Philippines and Thailand.
Australia will host the forum’s annual Heads of Delegation meeting in Sydney in October 2008, as well as technical and training meetings on the Gold Coast in May 2008.