India Moves to Finalise CECA with Australia Amid Trade Imbalance

ENA Global 2024-10-17 18:04:22 New Delhi, Oct 17 (KNN) India is working to expedite the finalization of a Comprehensive Economic Cooperation Agreement (CECA) with Australia, aiming to bridge gaps on sensitive trade issues and close negotiations within the next two months. The urgency is driven by Australias forthcoming elections in 2025, which could potentially delay the progress of talks if not concluded soon, according to Rajesh Agrawal, Additional Secretary in Indias Department of Commerce. The CECA will build upon the existing Economic Cooperation and Trade Agreement (AI-ECTA), which has been in effect since December 2022. The eleventh round of negotiations is expected next month. Both countries have benefitted from the ECTA, with over 80 per cent of its provisions already utilised, Agrawal told reporters. He added that both sides are working to reduce trade sensitivities over the next two months to reach a mutual agreement. Bilateral trade between India and Australia has remained steady, totaling around USD 24 billion in 2023-24. However, the trade balance is skewed, with Indias exports standing at USD 7.94 billion while imports amounted to USD 16.15 billion. Indian authorities hope that the expanded CECA can help address this disparity by offering enhanced market access and smoother trade flows. Beyond Australia, India is also focusing on renegotiating its Free Trade Agreement (FTA) in Goods with the Association of Southeast Asian Nations (ASEAN). Signed in 2009, the current agreement has led to challenges such as tariff asymmetry. India has granted broad tariff concessions—eliminating duties on over 74 per cent of goods—but has not received reciprocal benefits from some of ASEANs larger economies. Agrawal emphasized the need for a differentiated approach in the ongoing ASEAN review. ASEAN is not a customs union, and its member states are at varying levels of economic development. Engaging in bilateral discussions with individual ASEAN countries would provide India more flexibility to negotiate favorable terms, he explained. However, ASEAN traditionally prefers uniform concessions across the bloc, creating a negotiation challenge. ASEAN, comprising ten nations, remains a key trade partner for India, accounting for nearly 11 per cent of its global trade. India exported goods worth USD 41.2 billion to ASEAN in 2023-24, while imports reached USD 80 billion. The Indian government aims to complete the ASEAN FTA review by 2025, focusing on removing trade barriers and preventing misuse of the trade pact. With simultaneous efforts on multiple trade fronts, India is striving to secure better market access and enhance trade balance across its key partners. (KNN Bureau) 39634 https://knnindia.co.in/news/newsdetails/global/india-moves-to-finalise-ceca-with-australia-amid-trade-imbalance 2024-10-17 18:04:22 knnindia.co.in India Moves to Finalise CECA with Australia Amid Trade Imbalance