The Australia India Proposed Free Trade Agreement and Trade in Agriculture: Opportunities and Challenges

Abstract

In 2007, Australia and India began a joint feasibility study to assess the prospect of an Australia-India Free Trade Agreement (FTA). Agriculture will be a crucial negotiation point in any such FTA. Agriculture is a key sector of the Australian economy, and an important and lucrative export, with more than half of the sector’s output exported. The scope of increased domestic demand in agriculture is limited for a significant segment of the sector. Therefore, sustained growth of the industry requires new export markets to be opened. This paper will analyse the prospects of boosting agricultural exports from Australia via the proposed FTA. This paper will assess the tariff and non-tariff barriers in agriculture in India and critically assess how an FTA could reduce these barriers. The benefits of increased liberalisation of agricultural trade in India will also be discussed to demonstrate the mutually beneficial opportunities that reduced trade barriers could provide.