India and Australia Accelerate Push for Comprehensive Trade Pact
In a significant move to deepen economic integration, India and Australia have jointly reaffirmed their commitment to conclude the second phase of their Comprehensive Economic Cooperation Agreement (CECA) at the earliest opportunity. This development came as Commerce and Industry Minister Piyush Goyal held crucial talks with his Australian counterpart, Trade Minister Don Farrell, to review the ongoing negotiation progress.
Building on ECTA's Success
According to an official statement released after the meeting, both nations agreed to collaborate constructively to achieve a swift conclusion of a balanced and mutually beneficial CECA. The ministers conducted a thorough review of the advancements made in the ongoing negotiations and explored concrete strategies to further strengthen the already robust bilateral trade and investment linkages between the two Indo-Pacific partners.
The discussions also ventured into identifying new avenues to expand cooperation across a diverse range of sectors. This includes traditional segments like goods and services, as well as promising new and emerging sectors that hold potential for future growth.
A Foundation of Strong Trade Growth
The push for CECA builds upon the solid foundation laid by the first phase of the trade pact, the Economic Cooperation and Trade Agreement (ECTA), which officially came into effect in December 2022. The implementation of ECTA marked a key milestone in the economic relationship between the two countries.
The success of this initial agreement is reflected in the trade numbers. The official statement highlighted that India's bilateral merchandise trade with Australia stood at $24.1 billion during the 2024–25 period. Demonstrating a healthy upward trajectory, India's exports to Australia grew by an impressive 14% in 2023–24, followed by a further 8% growth in 2024–25.
Unlocking Future Opportunities
Both sides expressed strong confidence that the early finalization of the Comprehensive Economic Cooperation Agreement will be a game-changer. It is expected to unlock new and substantial opportunities for businesses in both nations, providing greater market access and creating a more predictable trading environment.
Ultimately, the successful conclusion of CECA is seen as a vital step that will contribute to significantly deeper strategic and economic ties between India and Australia, reinforcing their partnership in the dynamic Indo-Pacific region.
