Australia’s Bangladesh focus cheered amid trade diversification push away from China

Canberra’s bid to bolster ties with Dhaka comes as the Quad security alliance beefs up efforts to counter China’s Indo-Pacific influence

The government’s LNG supply chain focus signals it realises it can help businesses make markets like Bangladesh more accessible, says former diplomat

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U.S. Secretary of State Antony Blinken, Australian Foreign Minister Marise Payne, Indian Foreign Minister Subrahmanyam Jaishankar and Japanese Foreign Minister Yoshimasa Hayashi during a press conference of the Quadrilateral Security Dialogue (Quad) foreign ministers in Melbourne, Australia, February 11, 2022. Photo: Reuters

Published: 5:00am, 28 Feb 2022

Mention Bangladesh and for most Australians, what comes to mind is cricket, where both are fierce rivals in international competition. But Canberra is seeking to change that, with Australian Foreign Minister Marise Payne announcing earlier this month plans to deepen political and economic ties with the South Asian country.

Payne’s announcement, made on the sidelines of the four-nation Quad security alliance meeting in Melbourne, said Canberra would spend A$36.5 million (US$26.2 million) over the next five years to bolster relations with Dhaka.

About A$11 million of the budget would go towards improving regional cooperation in “maritime shipping, disaster resilience and information sharing” and just over A$10 million for finding new investments in the Bangladeshi digital sector.

Australia’s Foreign Minister Marise Payne speaks during a meeting between Australia, India, Japan and the United States that form the so-called “Quad” in Melbourne, Australia, February 12, 2022. Photo: AP

It will also invest nearly A$6 million towards promoting Bangladeshi and other infrastructure projects around the region to Australian businesses and about A$4 million in expanding the liquefied natural gas supply chains between Australia, India and Bangladesh, a mega gas consumer.

“Together, these measures will support opportunities for trade, investment and connectivity in the North East Indian Ocean,” Payne said in a statement.

To political watchers, the timing and content of the announcement was noteworthy. Australia, while marking 50 years of diplomatic relations with Bangladesh this year, has traditionally focused its engagement in South Asia on India, its eighth largest two-way trading partner.

But as China grows its political and economic influence over countries in the Indian Ocean, a region traditionally seen as New Delhi’s backyard, India is pushing back by strengthening its bilateral relationships through investments, grants and naval patrols.