Lok Sabha Question No. 5381 (UNSTARRED), answered on 2023-04-05
Subject: Trade Agreement with Australia
Ministry: COMMERCE AND INDUSTRY
Asked by: Gautham Sigamani Pon

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 5381 TO BE ANSWERED ON 05 th  APRIL, 2023

## TRADE AGREEMENT WITH AUSTRALIA

## 5381.   DR. PON GAUTHAM SIGAMANI:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मं त्री ) be pleased to state:

(a) whether it is a fact that India and Australia are committed to conclude negotiations for spending the scope of existing free trade agreement by the end of this year to push the bilateral trade to dollar hundred billion;

(b) if so, whether it is a fact that India and Australia implemented an economic cooperation and trade  agreement  an  are  now  negotiating  to  expand  its  scope  for  a  comprehensive  economic cooperation agreement;

- (c) if so, the details thereof;
- (d) whether it is a fact that India is in discussion with Australia on critical minerals which can be used in batteries for electrical vehicles and if so, the details thereof;
- (e) whether India and Australia have reached a major milestone in working towards investment in critical mineral projects to develop supply chains between the two countries; and

(f) if so, the details thereof?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

(a) India  and  Australia  are  currently  engaged  in  negotiations  on  the  Comprehensive  Economic Cooperation Agreement (CECA) which builds on the foundation laid by the India-Australia Economic Cooperation & Trade Agreement (ECTA) signed on 02 nd  April 2022. Both sides are looking forward for swift progress in the discussions and for the early conclusion of the CECA negotiations;

(b) Yes Sir. The India-Australia Economic Cooperation and Trade Agreement (ECTA) has been implemented w.e.f. 29.12.2022. Negotiations on the Comprehensive Economic Cooperation Agreement  (CECA),  have  commenced,  and  the  first  round  of  discussions  was  held  during  20-24 February, 2023.

(c) The  details  of  India-Australia  Economic  Cooperation  and  Trade  Agreement  (ECTA)  are available on the website of the Department of Commerce on link https://commerce.gov.in/international-trade/trade-agreements/ind-aus-ecta/.  With  respect  to  CECA negotiation, one round of negotiations on ECTA agreed subjects viz. Market access for goods and services,  Product  Specific  Rules  Schedule,  Digital  Trade  Chapter  and  Government  Procurement Chapter have been held between 20-24 February, 2023. Exploratory discussions on new areas of mutual interest were also held.

(d) Yes Sir. A Joint Venture Company named 'Khanij Bidesh India Limited' (KABIL) promoted by three CPSEs. i.e. National Aluminium Company Ltd. (NALCO), Hindustan Copper Limited (HCL) and Mineral Exploration & Consultancy Limited (MECL) under the aegis of Ministry of Mines, Govt. of India, is in discussion with Australia on critical minerals like Lithium and Cobalt which are used in batteries for electrical vehicles.

MoU between Ministry of Mines, Government of India and Government of Australia was signed in June, 2020 for cooperation in the field of Mining and Processing of Critical and Strategic Minerals of Australia.

A follow  up  MoU  with  detailed  collaborative  framework  was  signed  on  10  March  2022  between KABIL, India and Critical Minerals Facilitation Office (CMFO) (now known as Critical Mineral Office (CMO) ), Department of Industry, Science and Resources (DISER), Australia for carrying out joint due diligence and joint investment in Lithium and Cobalt mineral assets of Australia.

(e) Under the ambit of MoU, both KABIL and CMO, Australia are jointly working towards joint investment in the identified critical mineral i.e. Lithium and Cobalt projects in Australia.

(f) Both CMO and KABIL are taking steps towards shortlisting of projects for investment.

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