Australia-India FTA Feasibility Study

Overview

Australia and India have agreed to undertake a joint feasibility study on the merits of a free trade agreement (FTA) between the two countries.

Terms of Reference (TOR) for the study have been agreed.

The feasibility study, which includes an independent economic modelling component, is examining the potential impact on Australia and India of an FTA, including implications for economic growth, trade in goods and services, and investment, as well as for other commercial linkages.

The officials-level joint study group (JSG) met in New Delhi (17 April 2008) and Melbourne (21 May 2008). The joint study is expected to be completed by the end of 2008. Two further meetings are expected prior to that time, most likely in August and October.

The trade and investment relationship between Australia and India is important to both countries and is growing rapidly. In 2007, India was our six largest market for goods exports, our seventh largest market for services and our seventh largest market for goods and services combined. It is also our fastest growing major export market – with both goods and services exports increasing by an annual average of over 32 per cent over the last five years. Two-way trade in goods and services in 2007 totalled $13.3 billion making India our tenth largest trading partner.

Submissions

The Department of Foreign Affairs and Trade (DFAT) continues to accept public submissions on the merits of an FTA with India, including on particular market access issues and/or other factors affecting two-way trade and investment with India. All submissions will be made publicly available on the DFAT website unless the authors specify otherwise.

Submissions may be sent by email to india.ftastudy@dfat.gov.au or mailed to:

Ms Carol Robertson
Australia-India FTA Feasibility Study
Department of Foreign Affairs and Trade
R G Casey Building
John McEwen Crescent
BARTON ACT 0221

General Guidance on Preparing Submissions

Stakeholder submissions will assist the Australian Government in developing its approach and priorities for the negotiation of any future bilateral FTA.

Submissions are welcome in a range of forms – from a short email to more lengthy analytical contributions. Authors of submissions should advise if they do not wish their name and/or the text of their submission to be posted on this website.

In informing Australia’s approach and priorities, those making submissions could consider providing the following information:

For goods trade, market access issues which might include: tariffs, tariff-rate quotas, and non-tariff issues such as import licensing, technical regulations and standards, customs administration, quarantine requirements, and transport/distribution.
For services trade, possible issues could include the ability to deliver services through a variety of mechanisms, including establishing a commercial presence in India and/or the option for Australians to work in India; and issues relating to the recognition of qualifications and granting of licences to practise a particular profession.
In relation to the import of both goods and services, stakeholder views are sought on the costs and benefits of removing tariffs and any others measures affecting imports from India.
Views are welcome on any measures that may impact on investment in either direction.

Views are also welcome on the specific issues which potentially cut across trade and investment in other sectors, including for instance intellectual property, competition policy, government procurement, labour mobility, sanitary and phytosanitary (SPS) issues, and technical barriers to trade, and how an FTA could address these issues to advance two-way trade and investment.

Consultations

The Department accords a high priority to the expertise and interests of all stakeholders with interests in the commercial relationship and will continue to consult widely in preparing the study. Consultations with industry have been undertaken in Hobart, Melbourne, Brisbane, Sydney, Adelaide, Perth and Darwin. Consultations are scheduled for ACT industry on Thursday 17 July 2008. Those interested to take part in consultations are invited to contact the study team in the first instance, by email on india.ftastudy@dfat.gov.au or by telephone on 02 6261 9693.

Download registration form for ACT consultations (pdf) (rtf) (word)

Background Paper

This background paper provides a brief analysis of the current state of the economic relationship and the potential broad implications of an FTA between Australia and India.

Additional Information

For a political and economic overview of India and more information on Australia’s bilateral relations with India, go to the India country information page on the DFAT website.

Doing Business in India

For more information on doing business in India and about specific export opportunities, go to the Austrade website. As well as country-specific information, the Austrade website also has a database that can be searched by industry.

Contact Us

For further information about the Australia-India FTA Feasibility Study, please contact DFAT’s Australia-India FTA Feasibility Study team:

Email: india.ftastudy@dfat.gov.au

Australia-India FTA Feasibility Study
Department of Foreign Affairs & Trade
RG Casey Building
John McEwen Crescent
Barton ACT 0221

Tel: +612 6261 9693 or +612 6261 9696

For media enquiries, please call DFAT’s Media Liaison Section: +612 6261 1555