India and Australia to Advance Free Trade Agreement Talks in Sydney

Indian and Australian negotiators are set to begin their next round of discussions on a comprehensive free trade agreement in Sydney. The talks aim to finalize several chapters of the agreement, expanding the Economic Cooperation and Trade Agreement (ECTA) established in December 2022, and addressing new sectors like digital trade and mining.

Indian and Australian chief negotiators are set to commence the next round of comprehensive free trade agreement talks in Sydney. The discussions, which begin tomorrow, aim to finalize several chapters of the pact, according to an official statement.

The two countries have already implemented an interim agreement, known as the Economic Cooperation and Trade Agreement (ECTA), which came into effect in December 2022. These talks are intended to expand its scope under the Comprehensive Economic Cooperation Agreement (CECA).

The upcoming negotiations, scheduled from August 19-22, will address various aspects of the agreement. "Out of the total 19 areas of the agreement, we have completed our discussions on four chapters, and we are in very advanced stages in a few others. We hope that in this round, we should be able to close altogether, maybe more than 10 chapters," stated a commerce ministry official.

The focal points of the discussions will include market access for goods and services. The ECTA has already granted duty-free access to Indian exporters in over 6,000 broad sectors, such as textiles, leather, furniture, jewelry, and machinery, in the Australian market. Australia, in turn, has offered zero-duty access to around 96.4 percent of Indian exports.

The CECA aims for deeper and more comprehensive engagement on five issues initially agreed upon under the ECTA, covering goods, services, digital trade, government procurement, and rules of origin. New areas for collaboration, such as space, mining, and sports, have also been identified for the first time in a trade pact between the two nations.

Australia is a key trading partner for India in the Oceania region, with bilateral merchandise trade reaching approximately USD 24 billion in 2023-24. India's exports to Australia were valued at USD 7.94 billion, while imports stood at USD 16.15 billion.

(With inputs from agencies.)