India/Australia FTA

Trade with India: key issues

The India-Australia FTA (known as the Australia-India Comprehensive Economic Cooperation Agreement or AICECA) negotiations are now on hold.

Major issues:

ISDS and tariffs: Australia wants TPP model of ISDS, but India wants more limited version. India is also reluctant to move to zero tariffs.

Temporary migrant workers: India is seeking expansion of temporary workers with less labour market testing and other changes to student visas and computer-related service providers.

India FTA negotiations years away

20 April 2017: During a recent visit to India, PM Turnbull confirmed that negotiations with India for a bilateral free trade deal remain stalled and could be years away. Talks came to a standstill in late 2016 with the priority on the regional RCEP deal.

India negotiations stall with focus on RCEP

20 September 2016

Trade Minister Steve Ciobo recently called a pause and review of the bilateral trade deal the government is negotiating with India.

It appears that India has been reluctant to reduce tariffs for Australia because it wants to retain its bargaining power for the much bigger Regional Comprehensive Economic Partnership (RCEP).

Trade Minister reviews India FTA

23 August 2016

Trade Minister Steve Ciobo has called a pause and review of the trade deal the government is negotiating with India, according to reports in The Australian today (behind a paywall).

Call for bans on dangerous asbestos imports linked to trade agreements

August 5, 2016: The discovery of deadly asbestos from imported materials used in a new Perth hospital has sparked a debate about inspection of increased numbers of imports resulting from the China FTA, already in force, and the proposed Indian FTA.

But rather than cracking down on dangerous imports of asbestos products immigration Minister Peter Dutton has launched an extraordinary attack on the construction union,, blaming the union for "driving Australian companies to ‘cut corners’ by importing cheap Chinese materials that may contain deadly asbestos,” according to a report in The Australian.

India bilateral deal may slow down

22 March 2016

According to DFAT and statements made by new Trade Minister Steve Ciobo, bilateral talks between Australia and India are still a high priority and nearing conclusion. It has been the aim for negotiations to finish early this year and for legislation and ratification to take place before the end of the 2016.

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India/Australia FTA