India expediting FTA negotiations with Australia to resolve key differences: Report
New Delhi: India is aiming to accelerate its free trade agreement (FTA) negotiations with Australia over the next two months in an effort to resolve key differences on sensitive issues and finalize the deal, media reports said.
"If not, with Australia's elections next year, the talks may extend beyond that, depending on the progress we make in these two months," said Rajesh Agrawal, Additional Secretary in the Department of Commerce, reported PTI.
The eleventh round of negotiations is expected to take place next month, the report said.
The India-Australia Economic Cooperation and Trade Agreement (AI-ECTA) has been in effect since December 2022.
Both sides are now working to broaden the scope of the agreement through a comprehensive economic cooperation agreement (CECA), according to the PTI report.
Agrawal noted that over 80% of the trade agreement has already been utilized, benefiting businesses in both countries.
"Officials have been instructed to expedite the CECA talks if possible. Both sides have sensitive issues, and we’ll work together over the next two months to reduce those sensitivities and hopefully reach a conclusion," Agrawal added, stated the report.
Australia is a significant trading partner for India in the Oceania region, with bilateral trade reaching around $24 billion in 2023-24.
India’s exports to Australia were valued at $7.94 billion, while imports totalled $16.15 billion. Since 2021-22, trade between the two nations has hovered around $25 billion.
Regarding the India-ASEAN Free Trade Agreement (FTA) in goods, Agrawal emphasized India’s strong push to complete the review process by 2025.
The review is important as India faces tariff imbalances, having provided a "74% plus" tariff elimination to all ASEAN countries, but receiving lower tariff eliminations from the fast-growing, larger economies in the bloc.
"This tariff asymmetry needs to be addressed for a balanced FTA," Agrawal stated, adding that India is engaging in talks to undertake the review on a country-by-country basis, as ASEAN countries are not a customs union.
He pointed out that ASEAN prefers a single set of concessions, but India is trying to introduce flexibility to iron out these asymmetries.
ASEAN consists of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
The review of the agreement, signed in 2009, has been a long-standing demand from Indian industry, as India seeks to eliminate trade barriers and prevent misuse of the pact.
ASEAN is a key trade partner for India, accounting for about 11% of India's global trade. In 2023-24, India's exports to ASEAN countries reached $41.2 billion, while imports were $80 billion.
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