India-Aus to soon launch negotiations on Free Trade Agreement

India and Australia are expected to launch negotiations soon on Free Trade Agreement to enhance bilateral commerce.

A joint study group, set up to conduct feasibility study for such an agreement, has prepared a report favouring such a pact. The report will now be studied by the respective
governments before formal negotiations begin.

"The negotiations on the proposed FTA will begin after governments of both the countries examine the feasibility study on the pact. We expect it to start soon," newly appointed Australian high commissioner Peter Varghese told PTI here.

He said Australia was looking forward to begin the negotiations on the trade pact that will entail tariff liberalisation and removal of other barriers.

The feasibility study, which began two years back, examined the potential impact on Australia and India of an FTA, including implications for economic growth, trade in goods and services and investment, as well as for other commercial linkages.

The trade and investment relationship between India and Australia has been growing over the years, touching Australian $18.3bn.

In 2007, India was Australia's sixth largest market for goods exports, seventh largest market for services and seventh largest market for goods and services combined.