In an effort to boost economic ties between the two countries, India and Australia are expected to complete negotiations for an interim free trade agreement (FTA) soon, the commerce ministry reported on Thursday.
During a virtual meeting on Tuesday, Indian Commerce and Industry Minister Piyush Goyal and Australian Trade, Tourism and Investment Minister Dan Tehan reviewed the progress made in various rounds of talks between the chief negotiators of the two countries.
The report stated that the final agreement will be completed by the end of 2022, which is known officially as the Comprehensive Economic Cooperation Agreement (CECA).
There are areas like goods, services, investment, rules of origin, clear customs procedures, legal and institutional issues included in the pact. As of FY21, bilateral goods trade between India and Australia reached $12.3 billion, but India had a deficit of $4.2 billion with Australia after shipping out just over $4 billion in merchandise. Mineral fuels, pharmaceutical products, organic chemicals and gems and jewelry are among the main items traded.
It said that India-Australia CECA negotiations are in their advanced stages. Both countries should complete negotiations for the interim agreement soon.
It is also expected that a similar agreement with the UAE will be signed in March 2022.
Up to December 8, a panel of empowered officials approved new projects with a total Trade Infrastructure for Export Scheme (TIES) fund of Rs. 113 crore during 2021-22.
