Eager to wrap up the ongoing free trade agreement (FTA) negotiations with India by December this year, Australia is ready to offer a special package on work visas and seek lower commitments in the dairy sector.
“It (the FTA) is the next milestone in the relationship so we are hoping that it will be concluded by the end of this year. I am aware that there is political will on both sides and we will overcome any challenges, if there are any,” Australian Foreign Affairs Minister Julie Bishop told BusinessLine .
Renewed interestNegotiations on the FTA, formally known as the Comprehensive Economic Cooperation Agreement (CECA), were launched in 2011, but lost momentum as these got stuck on issues such as market opening for dairy products, ambitions in the services sector and movement of professionals. Both the countries, however, got back on the negotiating table with renewed eagerness last year.
“The Australian government wants greater access to India’s markets, as its own economy is slowing down and its trading partners, such as China and Japan, are also not doing very well. The (Narendra) Modi government is reciprocating the interest, as it wants to forge stronger ties with important partners,” an Indian official in Australia said. India, which is keen on greater mobility for its workforce, may be offered a special package on visas.
“In our FTA with China, we created a special package based on its particular demands in the construction sector. We are willing to do something similar for India,” an Australian government official said.
Once India spells out its requirements clearly, we could sit with our immigration officers and see what is possible, he added.
An Indian official based in Australia said “there are a large number of Indian IT companies in Australia, such as Wipro, Infosys, TCS and MindTree. We want an easier visa regime for professionals. We also want visas to be given faster.”
Dairy sectorAustralia also seems willing to lower its ambitions in the dairy sector.
“We understand the sensitivities that India has in dairy. We want to get into areas where we can cooperate rather than compete, such as high-end items and hi-tech areas,” the official said. The next round of the CECA talks, scheduled in July, will try to move forward on important areas such as goods, services and investments. In goods, India wants more market access for a whole range of items, including textiles and leather, while Australia wants greater openings for auto parts, dairy items, pulses, meat, textiles and wines.
Australia is also eager for India to offer more in areas such as financial services, tourism and education. India’s exports to Australia were about $2.3 billion in 2013-14 and it imported goods worth $9.8 billion.
(The writer is in Canberra at the invitation of the Australian High Commission in India)