India and Australia have started full-fledged negotiations on an early harvest free trade package, covering select items, with meetings between various group heads taking place through the virtual mode, an official familiar with the matter has said.

“Both sides seem to be quite serious about having an early harvest trade package in place by December end. The negotiations done in the past, before the talks stalled over differences on key issues, are also being used as reference,” the official told BusinessLine .

The negotiations follow a video conference between Commerce & Industry Minister Piyush Goyal and his Australian counterpart Dan Trehan on August 27, where the two decided to announce an early harvest package by December 2021 and instructed their officials to meet as often as possible.

A Comprehensive Economic Cooperation Agreement (CECA) would follow the early harvest package and would be aimed at expanded trade and investment flows to the benefit of both the economies and peoples, a joint statement issued by the two Ministers after the meeting pointed out.

Liberal visa regime

Some of the items for which Australia wants greater market access in India include agriculture produce, fruits, dairy, cosmetics & personal care products, minerals and processed food items. India, on the other hand, wants more openings in Australia for products such as refined petroleum, pharmaceuticals, gems and jewellery, auto components and textile items. India is also keen on a more liberal visa regime for its workers in Australia.

India and Australia had started talks on a CECA way back in 2011, but the negotiations were suspended in 2015 as India was not willing to meet Australia’s demands for farm and dairy products while its own demands of visa liberalisation were being ignored.

“Because of the past bitter experience, both sides are now aware of the areas of interest of the other and the existing red lines. There is a general hope that the negotiators would not repeat the mistakes of the past,” the official said.

The two governments are taking inputs from their industry for drawing up their negotiating strategies.

India was Australia’s seventh-largest trading partner and sixth-largest export market in 2020, driven by coal and international education, according to the Australian government. India’s total trade with Australia in 2020-21 was at $12.29 billion with exports at $4.04 billion and imports at $8.25 billion.

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