Australia and India to resume comprehensive FTA talks, significant progress expected

Chief negotiators from India and Australia are in negotiations for a comprehensive free trade agreement (FTA) in Sydney. Both sides are expected to finalize discussions on several key chapters of the pact, according to an official source.

The two nations have already implemented an interim agreement and are now working to broaden its scope under the Comprehensive Economic Cooperation Agreement (CECA). This interim deal, known as the Economic Cooperation and Trade Agreement (ECTA), has been in effect since December 2022.

A commerce ministry official mentioned that, out of the 19 areas covered in the agreement, discussions on four chapters have been completed, with significant progress made on several others. The official expressed optimism that more than 10 chapters could be finalized during this round.

In this round, both countries are expected to engage in market access discussions concerning goods and services. The ECTA currently provides duty-free access to Indian exporters in over 6,000 broad sectors, including textiles, leather, furniture, jewellery, and machinery in the Australian market. Australia, under this pact, has extended zero-duty access to India for approximately 96.4% of its exports. The CECA aims for a deeper and more comprehensive engagement in five areas—goods, services, digital trade, government procurement, and rules of origin—already covered under the ECTA.

Additionally, India and Australia have identified 15 new areas for negotiation under the comprehensive FTA, including collaboration in space, mining, and sports. These new segments will be included in a trade agreement with India for the first time.

Australia remains a key trading partner for India in the Oceania region, with bilateral merchandise trade reaching around USD 24 billion in the 2023-24 fiscal year. India’s exports to Australia during the last fiscal year amounted to USD 7.94 billion, while imports stood at USD 16.15 billion. Trade between the two countries has consistently hovered around the USD 25 billion mark since the 2021-22 fiscal year.