Read also: Suddenly, the world`s largest trade deal will not allow companies to sue governments. The Joint Study Group of the Australian and Indian governments has completed its feasibility study on the possible free trade agreement between the two countries. On the other side of trade, Australia is also an increasingly important target for Indian exports in value terms. Although this figure has increased over the past decade, India`s exports to Australia declined between 1990 and 2007 as a percentage of India`s total exports. While India has difficulty accepting the liberalized trade standards of most Western countries, it is also not in an economic context. In response to India`s economic strategy, published last year, the Indian government has commissioned an Australian reciprocal economic strategy, which is expected to be published before the end of the year. While this indicates that India clearly wants to develop its trade relations with Australia, it remains to be seen whether the New Delhi report recommends resuming negotiations on the free trade agreement. India has already concluded several free trade agreements – including the subcontinent countries, some ASEAN countries and Korea – and, more importantly, hopes to conclude a free trade agreement with the 27 countries that make up the European Union by December 2010. The Joint Task Force recommends that the Australian and Indian authorities consider a bilateral comprehensive free trade agreement that includes trade in goods, services, investment facilitation and other cooperation activities in a single company. “If Australia takes a flexible approach to milk and agriculture and is prepared to take into account some of our interests in the service sector, including simpler rules on visas for workers, a free trade pact can certainly be developed,” said the official.
Despite the absence of a comprehensive trade agreement and the notoriously high trade barriers and the weak ease of trade in India, trade between the two countries has recently expanded, from $9.3 billion in 2007 to $20.8 billion in 2018. But this is a far cry from the expansionary growth that Australia is hoping for, as it tries to diversify its economy beyond over-reliance on China and is also trying to strengthen bilateral relations with India. Negotiations for a free trade agreement with Korea are progressing rapidly and both sides hope to conclude the agreement before the end of the year. The other proposed agreements are Malaysia and Indonesia. India`s absence greatly reduces the market access That Australia hoped to gain. Australia has already concluded a free trade agreement with ASEAN and bilateral free trade agreements with all other countries. Trade between India and Australia has increased sharply over the past decade, but is strongly skewed in Australia`s favour.