FTA between India and Australia

 
India and Australia moved closer to finalise FTA (Free Trade Agreement) between them when the Trade minister of Australia Mr. Simon Crean visited India from 2nd May to 8 may 2010. Mr. Simon Crean attended the 12th meeting of the India-Australia Joint Ministerial Commission along with his Indian counterpart R.S. Sharma.

Post meeting both the ministers released the Feasibility Study report on the India-Australia Free Trade Agreement conducted by the Joint Study Group (JSG) of the two nations. The report endorsed the proposed FTA between India and Australia and recommended negotiation for bilateral FTA between the nations.

India and Australia also agreed to speed up the process for constituting the India Australia CEOs forum.India is also negotiating FTA with European Union.

• FTA between India and Australia is to include trade in goods and services, bilateral investment and economic cooperation.
• FTA between India and Australia is expected to be operational by 2012.
• India is Australia’s ninth largest trading partner and Australia is India’s tenth largest trading partner.
• The India-Australia Joint Ministerial Commission was established in 1989 and has held eleven meetings till date.
• India and Australia had decided in August 2007 to conduct a joint study on the feasibility of a FTA between the two countries.
• Bilateral Trade between India and Australia stood at 21.53 billion Australian dollars, a rise of 52% from the previous year.
• India’s export to Australia was 2.91 billion Australian dollars and India’s import of goods 15.42billion Australian dollars.
• India’s export of services were A$ 0.80 bn and import of services A$ 3.37 bn. India’s main service exports to Australia are computer and information services and tourism. Main Australian service exports to India are education, education-related travel and tourism.
• Coal, non monetary gold and copper ores and concentrates account for 80% of India’s imports from Australia.
• India is Australia’s largest export market for gold and chickpeas, second largest market for coal and copper ores and third largest market for lead and wool.
• In 2008 India and Australia signed five Action Plans, in the areas of coal, mining, power, petroleum and natural gas and new and renewable energy gas is significant showing the importance of natural energy resources.