India and Australia are all set to announce the launch of the strategically important free trade agreement (FTA) negotiations on Thursday in Canberra where the Union Commerce and Industry Minister, Anand Sharma, is going to hold bilateral talks with the Australian Trade Minister, Craig Emerson.
Mr. Sharma, who arrived in Sydney on Tuesday evening, will be flying to Canberra on Wednesday evening to hold bilateral trade talks and work out the final formalities for launching of the FTA negotiations between India and Australia. With the multilateral Doha round of free trade talks going on at a slow pace with a possible outcome in sight, the focus is now increasingly shifting to consolidating bilateral deals and the FTA is a result of that.
There is already a demand within Australia that the FTA negotiations should also include talks for sale of uranium to India, something which the Australian Government has been blocking, demanding that India should first become a signatory to the NPT. India is Australia's third-largest export market. Australia is India's 14th-largest market.
A feasibility study conducted earlier this year by both the countries had found that there was a need for a wide and comprehensive trade agreement and engagement between the two countries and this should also include services, investment and goods. “We are hopeful that trade and economics will get a big boost once the PTA comes into force. India is also negotiating a PTA with New Zealand and is in the process of initiating talks with half a dozen other nations. We want a wider economic engagement and give greater opportunity to our entrepreneurs,’’ Mr. Sharma said here.
Mr. Sharma is also scheduled to hold a number of bilateral meetings with some Australian Ministers and a meeting with Prime Minister, Julia Gillard is also on the cards at Canberra.
Meanwhile, Mr. Sharma said after his return to India, he would take up with the Finance Minister, Pranab Mukherjee the issue of extending the popular DEPB scheme for exporters. “There are certain issues of the exporters and industry including availability of credit at reasonable rates that i will be discussing with Mr. Mukherjee. We will try and work out a solution that will be to the satisfaction of all,’’ he remarked.
