Our Bureau
New Delhi
India and Australia are accelerating negotiations for a Comprehensive Economic Cooperation Agreement (CECA) in a bid to finalize the deal within two months. This urgency stems from Australia’s upcoming elections, which could delay discussions if not concluded soon.
Rajesh Agrawal, Additional Secretary in the Department of Commerce, emphasized the need to address sensitive issues on both sides to achieve closure. The CECA aims to expand upon the existing Economic Cooperation and Trade Agreement (AI-ECTA), which has already facilitated over 80% trade utilization since its implementation in December 2022.
The bilateral trade between India and Australia has reached approximately $24 billion in 2023-24, highlighting the importance of this partnership. India’s exports stood at $7.94 billion, while imports were $16.15 billion, indicating a significant trade imbalance that the CECA aims to rectify.
In addition to the CECA talks, India is also reviewing its trade agreements with ASEAN nations to address tariff asymmetries that disadvantage Indian exports. Agrawal noted that while India has eliminated tariffs on 74% of products for ASEAN countries, the benefits have not been evenly distributed among member states.
The upcoming eleventh round of negotiations is expected to take place next month, where both countries will work collaboratively to reduce sensitivities and finalize the agreement before Australia’s election cycle begins.
