India, Australia to sign interim trade deal on March 11, say sources

India and Australia will be finalizing a limited Free Trade Agreement (FTA) on March 11, sources privy to the development told Business Today TV. This early harvest agreement is set to reduce tariffs in key sectors like textiles, pharma, health, footwear etc. 

"We are set to sign an interim agreement with Australia on March 11, post that will concentrate on the final agreement in 2023. We will also sign a trade agreement with UK in April," said a source in the know. 

Commerce and Industry Minister Piyush Goyal early this month shared with media that 75 per cent of Australia's trade is covered under FTAs, but with this new agreement the percentage could shoot up to 90 per cent. An interim or early harvest trade agreement is used to liberalise tariffs on the trade of certain goods between two countries or trading blocs before a comprehensive trade pact is concluded. Both the countries will look at a comprehensive economic co-operation agreement (CECA) in 12-18 months. 

Goyal had early this month also shared that the interim agreement set to be announced in about 30 days and will cover "most areas of interest for both countries" including goods, services, rules of origin, sanitary and phytosanitary measures and customs procedures. 

Last week, India and United Arab Emirates inked a trade pact, Comprehensive Economic Partnership Agreement (CEPA) during a virtual summit led by Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed Al Nahyan. 

Also read: India-UAE trade pact to boost apparel exports, employment: Exporters

Also read: Trade with India need of the hour: Adviser to Pakistan PM