NEW DELHI: After the signing of the interim trade agreement between India and Australia, a committee formed by the two nations will start talks within two-and-a-half months for transforming the early pact into a full-fledged comprehensive economic cooperation agreement (CECA), according to official documents.
The interim pact or India-Australia Economic Cooperation and Trade Agreement (ECTA) was inked by Commerce and Industry Minister Piyush Goyal and Australian Minister for Trade, Tourism and Investment Dan Tehan on April 2.
According to the text of ECTA, both countries have established a negotiation sub-committee which shall be composed of government representatives of both sides.
"Within 75 days after the date of signature of this (ECTA) agreement, the negotiation sub-committee shall commence negotiations on amendments to this agreement, on a without prejudice basis, on areas including inter alia market access for goods and services, a complete product-specific rules schedule, a digital trade chapter, and a government procurement chapter, to transform this agreement into a Comprehensive Economic Cooperation Agreement," the text said.
Following those negotiations, the two countries "may make amendments to this agreement...to transform this agreement" into a CECA.
On customs procedure and trade facilitation, the text stated that both sides would endeavour to apply its customs procedures and practices in a predictable, consistent, and transparent manner.
"Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade between the Parties," it added.
India and Australia on April 2 signed ECTA under which Canberra would provide duty-free access in its market for over 6,000 broad sectors of India, including textiles, leather, furniture, jewellery and machinery.
The agreement is likely to be implemented in about four months.
The agreement would help in taking bilateral trade from USD 27.5 billion at present to USD 45-50 billion in the next five years.