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Australia might be the first such country that will ink a widespread trade pact with the new government, even as both sides have agreed to settle the differences on matters related to investments that was the main sticking point in the negotiations.
Apparently, earlier this month both sides held the sixth round of talks in which it was finalised that the chapter on investments in the CECA will supersede the Bilateral Investment Promotion and Protection Agreement (BIPPA). This was one of the main demands of Australia and it seems that the issue has now been sorted out, a senior official commerce department official told Business Standard.
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Australia was upset with the delay in revising the BIPPA model. However, it seems that the matter has now been sorted out. This issue also came out strongly during the visit of Australian Prime Minister Tony Abbott in July. It was also negotiated and agreed that the talks for CECA will be expedited and that the issue of pending BIPPA will be sorted through CECA.
“Discussions were held on market access, goods text, investment and services. India-Australia BIPPA is in force since May 2000 and it has been decided that CECA provisions of investment will supersede BIPPA,” the official said.
The official also said the investment chapter will be on similar lines, as it is under Australia’s free trade agreement with Malaysia. During Prime Minister Narendra Modi’s visit to Australia in November, it was decided that the CECA will be finalised by March.
Australia’s minister for trade and investment Andre Robb is visiting India next week under the aegis of Australian Business Week in India (ABWI) in order to explore investment opportunities here and identify areas of cooperation for the government’s ‘Make In India’ campaign.
Robb, who will be accompanied by a 300-strong high powered business delegation, will be visiting New Delhi and Mumbai from January 12-15. The ABWI is an initiative by both the governments with the objective to introduce India to Australian expertise across various economy verticals to enhance existing relationships with Indian businesses.
During the visit, it is expected that two sides might sign the large-scale contract on importing LNG from Australia.
Under the CECA, both sides seemed to have satisfactory talks on slashing of tariff on a range of goods and most of the text has been already agreed.
As far as trade in services are concerned, both sides have already exchanged preliminary views on the movement of professionals, although a substantial round of negotiation in this regard is yet to take place.
Australia is also key member to the Regional Comprehensive Economic Partnership (RCEP) Agreement in which India is also participating.
Ever since the new government has come to power in May, it has effectively halted all negotiations on free trade agreements as it wanted to review the state of play that took place under the previous UPA regime. As a result, several key trade agreements with countries such as Canada, Israel, Netherlands and Thailand are pending.
