India, Australia To Begin Negotiations For FTA Soon

New Delhi: India and Australia are soon likely to start negotianiton for a free trade agreement (FTA). They are in the initial phase of looking at the prospect of a free trade agreement with Australia. A joint study group, likely to be established within this year, will look at the sectors that could benefit from such an agreement. The Australian government had last week given its go-ahead to hold talks for the pact. The commerce ministry is now likely to send a formal request for setting up the group to the Prime Minister''s Trade and Economic Relations Committee (TERC). Talks will begin after the study group''s nod. Australia has been enjoying a healthy trade balance with India. During 2006-07, India exported merchandise goods worth $924.64 million, a growth of 48 per cent over the previous fiscal. India is negotiating similar deals involving goods, services and investment with Sri Lanka and Thailand with whom it already has free trade agreements.