PIB Summary- 6th May, 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

India and Australia to work closely for collaborative projects

Context

India and Australia held a productive Joint Committee Meeting to bolster their $24 billion merchandise trade ties.

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.

Analysis of the news:

• India and Australia, as significant trading partners in the Oceania region, conducted a Joint Committee Meeting (JCM) aimed at strengthening bilateral economic ties and exploring new opportunities for cooperation.
• The meeting, led by Indian Commerce Secretary Shri Sunil Barthwal and Australian Deputy Secretary Shri George Mina, addressed various trade and investment-related issues.
• Discussions included the implementation of the India-Australia Economic Co-operation and Trade Agreement (Ind-Aus ECTA), addressing market access issues for products like okra, pomegranate, and pharmaceutical pricing control.

India-Australia Economic Co-operation and Trade Agreement (Ind-Aus ECTA):

• India and Australia have operationalized the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) from December 29, 2022.
• 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.

The JCM established an institutional mechanism for regular exchange of preferential import data and addressed critical services issues like cross-border e-payments and mutual recognition agreements in professions like nursing and dentistry.
The commitment to remove certain requirements, alongside discussions on facilitating the mobility of healthcare workers and promoting telemedicine.
The meeting reviewed progress under the India-Australia CECA negotiations, aiming for a balanced outcome.

India-Australia CECA

• 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.

Businesses and associations explored areas of mutual interest including capacity building, vocational training, collaboration on critical minerals, digital connectivity, finance, education, agriculture, and healthcare.
Overall, there was a strong eagerness from both governments and businesses to enhance cooperation and take the strategic partnership to a new level for mutual benefit.

India Australia partnership for mutual benefit

• Strategic Alignment: India and Australia share common strategic interests, including maritime security and the stability of the Indo-Pacific region.
• 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.