VECCI has welcomed the announcement yesterday that the Australian and the Indian Governments will begin work immediately on a Trade and Economic Framework Agreement (TEFA) between the two countries.

 

"The TEFA should scope out trade and related barriers to improving bilateral commercial and economic relations, and potential areas for improving market access. An Australia - India TEFA could also usefully set the scene for a future comprehensive free trade agreement between the two countries", says VECCI Chief Executive Officer, Neil Coulson.

 

"If Australia were to complete an FTA with India (as well as with China), it would give Australia the golden trifecta of the United States, China and India.

 

"India is one of Australia's most important export markets (currently ranked number six in the world), accounting for just under 5 per cent of our exports (by value), and with our exports to that market growing at a phenomenal rate (more than 62 per cent, annually, last calendar year).

 

"Australia also has a merchandise trade surplus with India of some $4.3 billion last calendar year.

 

"Policy changes in India in recent years have created opportunities for Australian exporters across a number of areas, such as agriculture and mining, information and communication technology, medical products, and business and financial services", says Mr Coulson.