Trade Agreements Between India And Australia

Despite the absence of a comprehensive trade agreement and the notoriously high trade barriers and the weak ease of trade in India, trade between the two countries has recently expanded, from $9.3 billion in 2007 to $20.8 billion in 2018. But this is a far cry from the expansionary growth that Australia is hoping for, as it tries to diversify its economy beyond over-reliance on China and is also trying to strengthen bilateral relations with India. In the last round of negotiations, Australia`s agricultural exports were seen as a sensitive issue between the two countries, with democratic calculations by the Bharatiya Janata Party (BJP) playing an important role in preventing agreements. More than half of India`s jobs are related to agriculture, and although the sector is highly inefficient, both in production and distribution – leading to frequent price spikes such as those that have hit the onions recently – no political party has the will to open up the sector to increased competition or even reform, even if the long-term benefits were considerable. This political reality indicates that Australia is unlikely to achieve favourable status for its agricultural products when negotiations resume. List of agreements between two states, two blocs or one bloc and one state. Moreover, a deep suspicion of trade is an intrinsic feature of the nationalist nationalism advocated by the BJP. The party`s ideological fountain, the Rashtriya Swayamsevak Sangh (RSS), sees trade liberalization as a threat to Indian identity, and its economic understanding remains linked to Swadeshi`s idea of self-sufficiency by prioritizing indigenous products made exclusively from Indian production lines. The organization`s economic wing recently protested for ten days against India`s participation in the Comprehensive Regional Economic Partnership (RCEP), a free trade framework being negotiated between the ten ASEAN countries and Australia, China, India, Japan, South Korea and New Zealand.

India`s concerns remain an obstacle to reaching an agreement for all the countries concerned (the talks are expected to resume on 1 November). Turkey has bilateral and multilateral agreements: the formal decision to enter into negotiations between India and Australia for a free trade agreement between India and Australia will be taken after the two sides have undergone, in a series of videoconferences, what each is prepared to offer to the other party. Australia and India are on the road to concluding the Comprehensive Economic Cooperation Agreement (ECSC), which is expected to provide a significant boost to investment in both sides and further strengthen bilateral economic relations. Independent models made in 2008 showed that an ECSC between Australia and India could result in a net increase in Australian GDP of $32 billion and India`s GDP of $34 billion over 20 years. The study concluded that resources, agriculture, manufacturing, financial services, software, telecommunications and education are likely to benefit the most from a trade agreement between India and Australia. Since the end of the study, these possibilities have become even clearer and greater. April 20, 2017: During a recent visit to India, Prime Minister Turnbull confirmed that negotiations with India for a bilateral free trade agreement have stalled and could last for years. Talks stopped at the end of 2016, with priority given to the regional RCEP agreement. Austrade provides information, advice and a number of business services to help Australian businesses work at prices, costs and risks.