FTA talks with India pushed back due to national polls: Australian envoy

High Commissioner Harinder Sidhu says difficult to give deadline as issues yet to be resolved

The India-Australia free trade agreement will take longer to materialize as negotiations will resume after Australia completes its national elections in June, Australian envoy Harinder Sidhu said on Wednesday.

Speaking at discussion session on trade liberalization, the newly appointed high commissioner said Australia was keen to conclude the agreement but refused to give a deadline for its completion. Pointing out that fruitful talks can only be held after a new national government takes charge in Canberra in early June, Sidhu added that the complicated nature of the talks demanded more time.

"Australia would rather have a good outcome which takes time than one which doesn't satisfy aspirations on both sides", she said. The talks for a comprehensive economic cooperation agreement (CECA) were started in 2011 to boost both trade and investments between the two countries but progress has been slow due to disagreements over lowering tariff duties and access to services sector.

The countries had missed the last deadline - January, 2016 set by Prime Minister Narendra Modi and Australia's then-Prime Minister Tony Abbott in September, 2014.

Australia is pushing for tariff reduction in dairy, fresh fruit, pharmaceuticals, meat and wines. On the other hand, India wants zero duty on auto parts, textiles, and fresh fruit, including mangoes and greater access in the services sector.

Several rounds of negotiations have been completed for liberalizing trade and services regime besides removing non-tariff barriers and encouraging investments. The latest ninth round of negotiations took place in New Delhi on 21-23 September last year. After visiting India for the sixth time in April earlier this year, Australia's special trade envoy Andrew Robb said the deal may be completed in less than two months.

It had been reported earlier that India wanted to defer the talks keeping an eye on negotiations regarding the Regional Comprehensive Economic Partnership (RCEP), which are also ongoing.

The RCEP agreement involves the ten countries of the ASEAN grouping and six of its free trade partners - China, India, Japan, New Zealand, South Korea and Australia. Under the RCEP, India has offered tariff elimination of 42.5 per cent of all traded goods to Australia, while that country has offered zero tariff on 80 per cent of such goods.

India feels it may lose its leveraging power by finalizing a trade deal with Australia ahead of the RCEP deal, which is also languishing after other members complained India wasn't lowering tariffs enough.

Uranium supply from Australia

The high Commissioner also said that supply of Uranium will start from the country soon although ironing out contract issues will take some time. The Australia-India nuclear cooperation agreement permits Australian companies to commence commercial uranium exports to India.