Press Information Bureau

Government of India

Ministry of Commerce & Industry

03-August-2011 18:12 IST

FTA with Australia

The Government is holding talks with Australia relating to a Free Trade Agreement (FTA); India faces trade deficit of US$ 8.5 billion in goods trade with Australia in the year 2010-11. The major challenges faced by India on the trade front with Australia are issues relating to Sanitary and Phytosanitary measures and Technical Barrier to Trade for goods trade and flow of investment and services. On the educational front, safety of Indian students and status of their permanent residency and employment are major challenges.

Consultations are made with Trade and Industry Associations directly affected by the FTA. Views of relevant Export Promotion Councils are sought before the negotiations, as also of the concerned Ministries of the Government of India. For specific clauses, which can affect a State Government, regional meetings are held and inputs taken. During FTA negotiations, discussions are mainly focused on challenges being faced in trade and commerce issues.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Jyotiraditya M. Scindia, in a written reply in the Rajya Sabha today.

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Free Trade Agreement with Australia seeks to address sanitary and technical trade barriers and investment, services, and student residency concerns. Negotiations for a Free Trade Agreement with Australia focus on addressing Sanitary and Phytosanitary measures and Technical Barriers to Trade as principal impediments to goods trade, alongside parallel negotiation strands on investment and services. The process includes consultations with trade and industry associations, Export Promotion Councils and concerned central ministries, plus regional meetings to obtain State Government inputs on provisions that may affect sub national interests; education related issues such as student safety, residency and employment are also included in negotiation priorities.