6 May 2024 : PIB Summary for UPSC

●  Discussions ranged from resolving trade agreement issues to enhancing cooperation in critical services, signalling a commitment to deepen economic relations and explore new opportunities for bilateral cooperation.

● The ECTA provides Indian goods with access to the Australian market with zero customs duty on all tariff lines.

● It covers almost all tariff lines dealt by both countries, benefiting sectors like Gems and Jewellery, Textiles, and Automobiles.

● Australia has offered wide-ranging commitments in around 135 sub-sectors of services, while India has offered access in around 103 sub-sectors to Australia.

● The agreement is estimated to create an additional 10 lakh jobs in India, with benefits for Indian Yoga teachers, chefs, and students.

●  CECA stands for Comprehensive Economic Cooperation Agreement. It is a bilateral trade agreement aimed at fostering closer economic ties between two countries.

●  CECA is a comprehensive trade agreement that covers various aspects of economic cooperation between two nations.

● It aims to promote trade in goods and services, investment, and other economic activities.

●  CECA negotiations typically involve multiple rounds of discussions and consultations between the negotiating parties.

●  The agreement may include provisions related to tariff reduction, market access, intellectual property rights, and regulatory cooperation.

● CECA agreements are designed to create a favourable environment for trade and investment, leading to mutual benefits for both countries involved.

 India-Australia CECA:

● Australia’s exports to India totalled $32.4 billion and imports from India totalled $12.6 billion in 2022-23.

● CECA negotiations between Australia and India began in May 2011, with nine rounds before suspension in 2016.

● In September 2021, negotiations were re-launched with the aim of swiftly concluding an Economic Cooperation and Trade Agreement (ECTA).

● ECTA was signed on 2 April 2022 and entered into force on 29 December 2022, aiming to liberalise and deepen bilateral trade.

● CECA negotiations have resumed to build upon ECTA outcomes for closer economic ties, inviting submissions from stakeholders to inform the process.

● Economic Collaboration: Bilateral trade and investment between India and Australia have been growing steadily, with both countries seeking to diversify their economic partnerships. Australia’s exports to India totalled $32.4 billion and imports from India totalled $12.6 billion in 2022-23.

● Defence Cooperation: Both nations engage in joint defence exercises, such as AustraHind-23, AUSINDEX and intelligence sharing, and defence technology collaboration to address shared security challenges.

● Education and Research: India-Australia collaboration in education and research spans various fields, including science, technology, engineering, and innovation.

● People-to-People Ties: Cultural exchanges, tourism, and diaspora connections contribute to strengthening the bonds between the two nations.

● Strategic Dialogue: Regular high-level dialogues and summits between India and Australia facilitate discussions on regional and global issues of mutual concern.

● Multilateral Engagement: India and Australia cooperate in multilateral forums such as the United Nations, G20, and ASEAN, advocating for common interests and values.

● Emerging Areas of Cooperation: Both countries explore opportunities for collaboration in emerging sectors like renewable energy, cybersecurity, and space exploration.

● Diplomatic Relations: Diplomatic ties between India and Australia have deepened over the years, with frequent high-level visits and exchanges strengthening bilateral relations.

● Shared Values: India and Australia share democratic values, respect for rule of law, and commitment to a rules-based international order, forming the foundation of their partnership.