India-Australia trade: Goyal, Tehan agree to expedite FTA talks

🔴 The FTA will cover goods, services, investments, government procurement, among others.

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Commerce and Industry Minister Piyush Goyal. (File)

India and Australia have decided to expedite the pace of negotiations to clinch an interim trade deal, which will be followed up with a broader free trade agreement (FTA).

Commerce and Industry Minister Piyush Goyal and Australian Minister for Trade, Tourism and Investment Dan Tehan held a virtual meeting on Tuesday and reviewed the progress made in various rounds of talks between the chief negotiators of both the sides.

Earlier this year, both the countries had aimed at clinching an FTA, formally called bilateral Comprehensive Economic Cooperation Agreement, by December 2022. However, an early-harvest deal was to be clinched by this Christmas. The FTA will cover goods, services, investments, government procurement, among others.

While bilateral goods trade stood at $12.3 billion in FY21, India had a deficit of $4.2 billion with Australia, as it shipped out merchandise worth just over $4 billion. Major traded items include mineral fuels, pharmaceutical products, organic chemicals and gem and jewellery. “The ministers appreciated the progress made in various rounds of talks between the chief negotiators of both the sides and discussed the way forward for an early conclusion of interim agreement,” the Commerce Ministry said in a statement. FE