INDIA AND AUSTRALIA AGREE TO A JOINT STUDY ON OPTIONS FOR A BILATERAL FREE TRADE AGREEMENT
Date : 31 Aug 2007
Location : New Delhi
India and Australia have agreed to undertake a joint feasibility study into the benefits of a free trade agreement (FTA) between both countries.
Trade and investment links between Australia and India have grown rapidly in recent years. It is expected that the study would provide a timely opportunity to examine the potential for benefits which might flow from a bilateral FTA.
India is emerging as one of the key drivers for global economic growth and its economic rise will be increasingly critical to world economic development. Australia’s established economic strength and competencies make it a significant trading partner for many countries, including India.
The study will examine the potential benefits of FTA for both countries. In particular, the study will focus on the impact a FTA could have on promoting economic growth in both countries, bilateral trade in good and services, as well as investment and other commercial linkages.
The Governments will initially hold bilateral meetings to discuss the terms of reference for the FTA feasibility study. The study will commence in late 2007 and is expected to be completed in 2009.
Two-way trade in goods and services between Australia and India reached US$ 7.76 billion in 2006-07.