Want trade deal to be win-win for both nations, says Australian minister Dan Tehan

File image of the Sydney harbour.

The ongoing negotiations on the proposed trade deal between India and Australia will be hard but fair, involve compromises by both sides and still ensure major economic benefits,  Australian Minister for Trade, Tourism and Investment Dan Tehan has said.

Currently visiting India for talks on the Comprehensive Economic Cooperation Agreement (CECA), Tehan on October 1 said in a press briefing that the deal is being negotiated with a 'fresh perspective'.

Both sides had announced yesterday that an early harvest trade deal will be signed by Christmas later this year, to be followed by a comprehensive Free Trade Agreement by the end of 2022. To this end, both government's have decided to exchange the first list of offers by October.

Tehan said that while being part of the Quad grouping has brought the two nations closer, the latest discussions are being guided by bilateral ambitions. He stressed that the latest urgency in concluding a trade deal is not due to both nation's aversion to China.

"Australia currently has some difficulty in its trade relations with China that have been well documented. However, the trade talks with India are guided by the motivation to expand business beyond the current $25 billion annually," he said.

All-inclusive pact

The final agreement will have dedicated chapters on energy and resources, a key area for Australia, as well as e-commerce even though Australia will wait for India to first spell out its official e-commerce policy, Tehan said.

In 2019, Australia adopted ‘An India Economic Strategy to 2035’, penned by former Australian high commissioner to India Peter N Varghese, which bats for more economic linkages between the nations at a time when Australian businesses have been scouting for newer overseas markets and hoping to reduce their trade dependence on China.

The country also wants to ensure that its premium food, beverage and consumer product providers are able to access e-commerce channels to better enter the Indian market.

In the agri sector Australia harbours ambitions to receive market access for fruits and vegetables, grains and dairy, along with high-value products such as premium wines. "We want to expand access to the Indian market. But we understand the sensitivities," Tehan said.

Long time coming

Both sides had announced last month that they aim for an early harvest trade deal by December 2021. An early harvest trade deal is one in which both parties sign off on a set of relatively easily achievable deliverables. Such pacts target specific goals like tariff reduction and market access on select items while leaving more contentious items off the agenda.

Moneycontrol had recently reported that the deal could be the first one to have a formal chapter on tightening supply chains between the countries.

Discussions on market access for Australian dairy products and meat, apart from Australia’s discomfort with opening up services exports, have proved to be major sticking points in the deal, talks on which had begun in 2011.