Australian minister Don Farrell to visit India in Sept for Trade Pact talks

Australian minister for trade and tourism Don Farrell is likely to visit India next month to begin talks on a bilateral comprehensive trade agreement with Canberra.

The interim trade deal that the two sides signed earlier this year is also expected to be ratified soon.

India and Australia signed the Economic Cooperation and Trade Agreement (ECTA) in April and the pact is expected to enter into force this year after both countries complete domestic and parliamentary processes.


"Canberra has communicated that all Parliamentary and legal procedures to get the ECTA ratified will be done soon after which negotiations for a compressive agreement would begin," an official said.

Australia has also agreed to amend its domestic tax law to stop the taxation of offshore income of Indian firms providing technical services in the country.

"The Double Taxation Avoidance Agreement (DTAA) changes would also happen simultaneously," said another official.

The first official quoted earlier said Australia had indicated its keenness to intensify economic, trade and investment ties.

"The minister would come with a strong business delegation. The contours of the comprehensive pact are yet to be decided," the official said, adding that Australia was also keen on a comprehensive strategic partnership with India.

The ECTA is India's first trade agreement with a developed country after more than a decade and Canberra's first where dairy has not been included.

India has kept many sensitive products in the exclusion category (29.8% of tariff lines) in the pact without offering any concession.

Australia would give duty-free access in its market for 96.4% of the value of exports (98% of tariff lines), including textiles, leather, jewellery and sports goods, from Day One of the entry into force of the agreement.