Three major trade deals will be negotiated from Australia to the UK in June

According to sources informed of the developments, June is shaping up to be a hectic month for India’s vital trade discussions on three agreements: new pacts with the UK and the European Union (EU), as well as a stage-two comprehensive deal with Australia.

The sources stated, on condition of anonymity, that the fifth round of discussions for the India-EU free trade agreement (FTA) would take place in New Delhi from June 19 to June 23, while the tenth round of negotiations with the UK is scheduled to end on June 9. In Delhi from June 26 to 29, the fifth round of talks between India and the EU on an investment protection agreement will take place.

The two parties are pursuing the next stage of the agreement, a Comprehensive Economic Cooperation Agreement (CECA), after operationalizing the Economic Cooperation and Trade Agreement (ECTA) with Australia in December of last year. According to one of the officials, the dates for the third and fourth rounds of discussions for this will be set in the first half of this month (June 5–16) and the first half of the next month (July 3–14).

The person said, “The idea is to clear the way for an early conclusion of the talks.” The ECTA, which was signed on April 2, 2022 and approved by the parliaments of both nations in November of last year, is being expanded by India and Australia. In accordance with the contract, the transaction became effective on December 29, one month following the exchange of paperwork.

The pledge to finish CECA by the end of 2023 was reaffirmed by Prime Minister Narendra Modi and his colleague Anthony Albanese during their recent trip to Australia.

According to the source, CECA would elevate economic connections to a strategic level since Australia is anticipated to provide uninterrupted supply of vital minerals like lithium and cobalt with secured supplies. At the second round, which took place in Sydney between April 17 and 21, the two parties undertook exploratory conversations spanning 13 topics.

However, difficult problems like Australia’s desire for more market access to India for its wines and agricultural goods would need to be resolved, the officials added.

“Negotiations for the Australia-India CECA are ongoing, building on the successes of our ECTA,” Australian High Commissioner Barry O’Farrell said. Prime Ministers Modi and Albanese have praised rapid negotiating progress and a quick completion of an ambitious CECA.

Australian trade negotiations are moving quickly because of an existing, “highly successful” trade agreement. Due to the engagement of several stakeholders from the European Union, the same speed is lacking in negotiations with the EU, a second official said.

Following a statement made by the leaders of the two parties in May 2021, the India-EU FTA discussions were officially re-launched in June 2022. According to the authorities, four rounds of discussions concerning topics related to goods and services were completed up to March as part of the talks, which span 23 policy areas or chapters.

The fourth round was intended to hasten text preparation and enhance awareness of areas of convergence and difference between India and the EU, while the third round marked the start of actual discussions. The fourth cycle also prioritized the exchange of proposals for market access for investments, services, and commodities as well as participation in public tenders.

The two sides reviewed 15 articles in the critical field of digital commerce, including data flows, privacy, rules for access to and use of the internet for digital trade, and the power to regulate. According to the authorities, “good progress” was made on a number of provisions.

The first official said that the India-UK FTA discussions, which were started in January 2021, advanced quickly when former premier Boris Johnson was in office but bogged down after that due to important problems including mobility.

However, he said, “it is developing nicely. Up to April 2023, nine rounds had been finished, and 13 chapters had been closed. In the tenth round, significant development is anticipated in additional chapters.