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Sydney, Australia: The tariff onslaught being unleashed by US President Donald Trump, particularly on its partners like India, bodes well for the growth and expansion of bilateral trade between New Delhi and Canberra, even as both sides seek to expedite talks for concluding the pending Comprehensive Economic Cooperation Agreement (CECA), according to the Australia-India CEO Forum.

Amid concerns over the stalling of talks between the United States and India over signing the Bilateral Trade Agreement, negotiations for concluding the CECA have gained momentum in the last few weeks with Commerce and Industry Minister Piyush Goyal meeting Australian Minister of Trade and Tourism Senator Don Farrell last week.

“The free trade agreement with India is very important (for Australia) because that’s how you achieve ease of business, improve your markets and India has been very positive … India is now very open to free trade agreements and there is an effort by both sides to get the CECA across the finishing line. It is positive to see that the negotiations for the second stage are progressing well. And, underpinning the trade talks is a significant people-to-people relationship,” Jodi McKay, Director, Australia-India CEO Forum, told ABP Live during an interaction.

According to McKay, “There is a huge effort and enthusiasm from India (to sign the CECA with Australia)…We want to see the CECA across the line. The negotiations are progressing.”

The Australia-India CEO Forum was established by the Australian and Indian Prime Ministers to tap into the experience and expertise of leading CEOs in Australia and India to grow bilateral trade and investment.

The CECA will be an expanded version of the Economic Cooperation and Trade Agreement (ECTA), which came into force in December 2022. The ECTA has already lowered and in some cases eliminated tariffs on over 85 per cent of goods that are being exported by Australia to India. From January 1, 2026 onwards the tariff reduction or elimination will cover 90 per cent of Australian merchandise being sold to India.

Both sides have also set a trade target of AUD 100 billion by 2030. While it was expected that the CECA will be signed soon after the ECTA came into effect, talks have dragged on the sensitive issues such as reduction of tariffs or bringing it down to zero on export of Australian dairy products and wines and spirits to India.

However, with US President Trump’s tariff imposition on countries creating a global volatility in the markets, countries are expediting bilateral trade deals amongst themselves to safeguard their economy.

“I don’t think US tariffs will impact Australia’s view of India. We have such an incredible relationship which will increase our trade with India because it starts at a low base. Australia is aware of the global volatility right now but these discussions (for CECA) with India have been occurring much longer than the volatility that exists,” added McKay.

“Now with the challenges with the US market, some companies are looking to leverage manufacturing collaboration between Australia and India… I see this US imposed tariffs challenges as an opportunity for Australia and India to look at lot more than what they had planned earlier and service other global markets like the UAE by leveraging this partnership,” said Irfan Malik, New South Wales President and National Associate Chair of the Australia-India Business Council.

‘China Market Is Important But Diversification Is Key’

On being asked about Australia’s trading relationship with China which has been growing by leaps and bounds for decades, McKay said, “The market we have with China is mature and we have been doing trade with China for a very long time. But we are now keen to increase our trade and also investments with India as well.”

“Trade diversification is important. So we have had a lot of focus on China but now it is being put on India. It is an important market for us,” she added.

According to Steven Blaney, General Manager (Corporate Affairs), Commonwealth Bank, “China has undergone astronomical changes in the last couple of decades. I feel India is now undergoing the same period. It’s like a new relationship that you are trying to lean onto and you have to give it time to see what the opportunities are.”

According to the Australia-India CEO Forum, the Australian side is “very aware” of the sensitivities India has in giving more market access to its agricultural sector and that is why it is trying to export only those products where “India has limitations and Australia has strength.”

“The markets that are being pursued are the ones where there is a limitation that India has and where Australia has strength … Under the ECTA, India has benefited enormously where all tariffs were wiped. There is not a tariff paid coming into this country. CECA is focused on mobility and digital trade and we want to see that cross the line too,” she added.

The CEO Forum brings together the most senior business leaders from both countries to strengthen trade and investment ties. It meets annually and provides advice to heads of government on ways to strengthen economic prosperity for both India and Australia.

The CEO Forum has been active since 2012 and was relaunched in 2023 by Prime Minister Anthony Albanese and Prime Minister Narendra Modi.

India and Australia have been negotiating the CECA since May 2011. However, after several rounds of negotiations, talks were suspended in 2016. It was thereafter revised in September 2021, and eventually the ECTA was signed.