Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Accelerating Free Trade Agreement Negotiations Between Australia and India
Key Takeaways:
- Australia’s assistant trade minister, Tim Ayres, is visiting India to assess the progress of the Free Trade Agreement (FTA) negotiations and finalize the agreement by the end of the year.
- Ayres will participate in the G20 Trade and Investment Ministers’ meeting in Jaipur and play a role at the B20 Business Summit in New Delhi.
- The conclusion of the agreement will enable Australia and India to strengthen their bilateral economic partnership.
In a bid to accelerate the Free Trade Agreement (FTA) negotiations with India, Australia’s assistant trade minister, Tim Ayres, is on a visit to India to assess the progress of the pact and finalize the agreement by the end of this year.
Ayres is set to participate in the G20 Trade and Investment Ministers’ meeting, which is scheduled to begin on 23 August in Jaipur. He will also play a prominent role at the B20 Business Summit in New Delhi later this week.
“I will also use this visit to discuss progress on our Free Trade Agreement with India, the Australia-India Comprehensive Economic Cooperation Agreement (CECA), which we are looking to conclude this year,” said Ayres in a statement on Wednesday.
The conclusion of an ambitious agreement will enable Australia and India to realize the full potential of their bilateral economic partnership, he added.
India and Australia signed the Economic Cooperation Trade Agreement in April 2022, which came into effect from 29 December 2022. Following the implementation of the pact, India’s trade deficit with Australia has narrowed by 15%, primarily due to increased exports of drugs, electrical machinery, and iron and steel articles.
However, India’s exports to Australia have fallen by over 32% in the five months leading up to May compared to the previous year, while imports have shrunk by 25%, resulting in a narrowed trade gap of $3.87 billion, representing a 15% decline from the previous year, according to official data.
Excluding the energy basket, such as oil and coal, from the trade data reveals that India’s exports rose by 3.3% during the period, while imports saw a significant decline of 31%, resulting in a narrowed trade gap of $3.27 billion, marking a 41% decrease from the previous year.
“I look forward to meeting with my G20 counterparts to discuss how we can boost international trade and investment to help create more jobs and address slowing global growth,” Ayres said in his statement. He also emphasized the importance of a strong rules-based multilateral trading system with the World Trade Organization at its core.
Ayres also stated that Australia will continue to work closely with India in support of its G20 presidency.
During his visit, Ayres will also meet with European counterparts to discuss progress on the Australia-European Union Free Trade Agreement negotiations.