After implementing the interim trade deal—Economic Cooperation and Trade Agreement (ECTA)—in December, India and Australia now aim to conclude negotiations for a comprehensive trade pact by the end of this year.
Both countries are also looking at achieving $100 billion in bilateral trade.
“ECTA was the first stage of our economic engagement. We are now entering into phase two of our discussions where we are looking at a much wider ambit of subjects and taking this into a CECA,” commerce and industry minister Piyush Goyal said while addressing the media on 18th joint ministerial commission with his Australian counterpart Don Farrell.
When the ECTA was signed last year, it was decided that the larger idea would be to use the foundation of the interim deal to resume negotiations on the more ambitious trade deal or comprehensive economic cooperation agreement (CECA).
The CECA will include discussions on deeper market access and outcomes in new areas, including digital trade, government procurement, and cooperation.
Farrell, who is in India with Australian Prime Minister Anthony Albanese on an official visit, said that during the first month of the current agreement or ECTA, $2.5 billion worth of Australian products were brought to India at a lower tariff than the month before.
Between April and January, Australia was India’s 11th largest trading partner, with bilateral merchandise trade standing at $22.1 billion. India exported goods worth $6.02 billion, while imported goods worth $16.08 billion during the same time period.
Goyal also said that India is in talks with Australia regarding critical minerals that can be used in electric vehicle batteries. “Going forward, we would need those minerals for our electric vehicles…it was also discussed at the prime ministers’ level,” Goyal said.
The minister further said that India has a scarcity of critical minerals that are used in manufacturing batteries of electric vehicles. Australia, on the other hand, has huge reserves, which they do not process and manufacture.