At a joint ministerial commission meeting on Saturday between Union Trade and Industry Minister Piyush Goyal and his Australian counterpart Don Farrell, both India and Australia agreed to complete discussions to increase the scope of the existing free trade agreement by the end of 2023. Both nations also agreed to aim for USD 100 billion in bilateral trade.
Don Farrell, Australia’s Minister for Trade and Tourism, accompanying Australian Prime Minister Anthony Albanese on an official visit to New Delhi, said the two nations “can achieve” this goal. On December 29, last year, India and Australia adopted an economic cooperation and trade agreement (ECTA) and are presently negotiating to broaden the scope of the accord for a comprehensive economic cooperation deal (CECA).
“ECTA was the first stage of our economic engagement. We are now entering into phase-2 of our discussions where we are looking at much wider subjects and taking this into a CECA,” Goyal told reporters during a joint press conference here.”
Both ministers have voiced “dissatisfaction” with trade negotiators and stated that they “will be much more ambitious and aim for a USD 100-billion trade between the two economies,” he said.
According to Farrell, the two countries “can achieve” this goal. Regarding the timeline for completing the CECA discussions, Goyal stated that while everything is done under a deadline is always “hazardous” since “you may end up making mistakes,” and “we” must do things quickly.
He stated that both trade ministers are committed to expediting the discussions. Both the prime ministers have “collectively tasked us to work towards closing the CECA negotiations within this calendar year. We would love to do that. We would work to engage in the same spirit as ECTA and hope for quick outcomes without compromising on its quality,” Goyal added.
He also stated that “we are quite unsatisfied” with the USD 30-billion bilateral trade, and that India and Australia have set a target of USD 45-50 billion over the next five years. According to Goyal, there are numerous chances to further collaboration in fields like education, technology, audio-visual services, and sports.
While Australia has some “very” great technology, education institutes, and sports, he believes India can give more in terms of the talent pool, manufacturing base, and startup environment.
About increased agri-trade with Australia, the Indian commerce minister stated that numerous areas of common interest are being considered by agricultural ministries on both sides to overcome sanitary and phytosanitary (plant and animal) difficulties.
Albanese stated that both countries are looking at firming up the ambitious CECA by 2023 following the first India-Australia summit talks here on March 10 on a range of key issues, while a joint statement stated that the two prime ministers tasked the concerned officials to expedite the conclusion of a Migration and Mobility Partnership Arrangement (MMPA) within the next three months. Goyal praised Australia for addressing Indian concerns in the agricultural and dairy industries, which affect small and marginal farmers.
“We are looking at win-win opportunities in many areas which will open up a lot of potential like in space technology, Australian education systems and critical minerals, energy storage system that are developed in Australia and sports…Our focus has been leveraging on each other’s comparative competitive advantages to add to trade,” he added.
According to Farrell, Australia possesses all of the essential minerals required to manufacture batteries for electric cars. He also stated that Australia transported items worth USD 2.5 billion to India in the first month of the ECTA. Farrell went on to say that the Australian wine business can come to India and help the Indian wine industry by sharing expertise and quality.
“I do hope that in the months to come we will be able to send our teams from India from the wine sector and will be able to invite teams from Australia coming in forging alliances with mutual cooperation,” Goyal said.
Goyal stated that because Australia has a huge coastline, India may learn various water sports from them. Farrell responded to a question about whether Australia is considering including gender and sustainability problems in the CECA by saying that the government is considering these topics as part of the CECA.
According to Goyal, India is open to discussions and wants to engage with the rest of the world from a position of strength, learning from best practices.
