New Delhi: As part of a comprehensive economic cooperation agreement (CECA), India and Australia are looking to conclude the initial harvest scheme – covering rates on items that contribute to almost half trade and easier rules for the service sector – in December, more than A decade after the conversation began.
If negotiations run according to the plan, this will be the first among a series of trade deals to be achieved by India, with talks with the European Union, England, Canada and UAE chased.
While negotiations on many of them have started almost a decade ago, they were pushed more aggressive after India came out of dialogue to become part of RCEP, grouping trade with China, Japan, Korea, New Zealand, ASEAN countries.
However, there is a gap that needs to be narrowed with Australia.
For example, when it comes to trade facilitation, India does not want to exceed what has been done at the WTO.
Plus, it has concerns over allowing agriculture and processed food.
India hopes that the agreement will open the door for its professionals, such as those in the IT sector, to get better access in Australia.
But both parties believe will narrow the difference.
The December target was agreed during a meeting between trade and the Minister of Industry Piyush Goyal and his partner Australia and Tehan.
During the meeting, said the source, Goyal set a mid-September deadline to resolve the overall scope of the initial harvest scheme.
“The ministers appreciated the progress made in three rounds of talks between the main trade negotiators of both parties and discussed the road to the beginning of the initial conclusion of the Bilateral CECA …
The ministers directed officials to accelerate negotiations and to meet as often as needed to reach the initial harvest announcement In December 2021 in the temporary agreement to liberalize and deepen bilateral trade in goods and services, and open the way for a comprehensive agreement, “said a joint statement on Friday.
Since the Covid-19 outbreak, India along with Japan has also cooperated with Australia at the Tangguh supply chain initiative, which seeks to reduce dependence on China.
In the past few months, Australia, who has signed a trade agreement with China a few years ago, has seen massive trading tensions with Beijing.