Australian trade minister Dan Tehan will be visiting India today to further discussions on the proposed trade pact currently being negotiated between the two countries.
"Minister for trade, tourism and investment Dan Tehan will travel to India today to advance negotiations on a free trade agreement and promote Australia as a premium destination for students and tourists," a release by Tehan's office said.
Tehan is scheduled to have several meetings with commerce and industry minister Piyush Goyal aimed at furthering negotiations on the India-Australia Comprehensive Economic Cooperation Agreement (CECA).
Official sources indicated that while there may be an announcement on the CECA during the visit, both sides are yet to flesh out the final details of the deal. Instead, the main centrepiece of Tehan's visit will be the signing of a memorandum of understanding between India and Australia, to promote further travel and tourism between the two countries.
India had announced in late August 2021 its intention to begin renegotiations on the CECA, and sign an early harvest deal by December 2021. An early harvest trade deal is one in which both parties sign off on a set of easily achievable deliverables. Such pacts target specific goals such as tariff reduction and market access on select items while leaving more contentious items off the agenda.
This was followed by an announcement in September 2021 saying both sides will finalise the early harvest pact by Christmas of 2021, to be followed by a comprehensive free trade agreement in 2022. But despite a lot of enthusiasm from both sides, the Christmas deadline was missed. While the government had been confident of working out the details soon, officials say existing issues have derailed the talks.
“Mr Goyal and I have been in regular contact over the Christmas/New Year period because we are both committed to concluding an interim free trade agreement. Nothing can replace face-to-face meetings to help speed up the process in the interest of both countries,” Tehan was quoted as saying in the public statement.
The latest talks on the deal were announced in September 2021.
Enthusiasm galore
“A free trade agreement with India would be a boon for Australian businesses, farmers and workers, creating new jobs and opportunities with one of the world's largest and fastest developing economies," Tehan said on Tuesday. CECA is a potential game-changer in opening opportunities for both Australia and India, and is an important piece of our post-COVID economic recovery, he added.
Senior Aussie trade officials had earlier told Moneycontrol that Australia aims to significantly expand business with India in diverse sectors such as food and grains, core minerals, and high-tech equipment.
Australia was India's 15th largest trading partner as of 2020-21, with trade worth $12.29 billion, and a trade deficit of $4.2 billion.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
