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Comprehensive Economic Cooperation Agreement (CECA):

GS Paper 2:

Topics Covered: Bilateral Relations.

 

Context:

India and Australia are fast-tracking negotiation regarding the bilateral Comprehensive Economic Cooperation Agreement (CECA).

 

Current Affairs

 

India- Australia bilateral trade:

  • India’s exports to Australia amounted to $4.04 billion while imports were $8.24 billion in FY21.
  • Major Indian exports to Australia are petroleum products, medicines, polished diamonds, gold jewellery, apparel etc, while key Australian exports to India include coal, LNG, alumina and non-monetary gold.
  • In services, major Indian exports include travel, telecom and computer, government and financial services, while Australian services exports were principally in education and personal travel.
  • In 2020, India was Australia’s seventh-largest trading partner and sixth largest export destination, driven by coal and international education.

 

Insta Curious:

Difference between CECA and CEPA:

  1. CECA – Comprehensive Economic Cooperation Agreement.
  2. CEPA – Comprehensive Economic Partnership Agreement.

The major “technical” difference between a CECA and CEPA is that CECA involve only “tariff reduction/elimination in a phased manner on listed/all items except the negative list and tariff rate quota (TRQ) items.

  • CEPA also covers the trade in services and investment and other areas of economic partnership”.
  • So CEPA is a wider term that CECA and has the widest coverage.
  • Usually CECA is signed first with a country and after that negotiations may start for a CEPA.

 

InstaLinks:

Prelims Link:

  1. About CECA.
  2. About CEPA.
  3. India’s FTAs with other countries.

Mains Link:

Discuss the significance of India- Australia CECA.

Sources: the Hindu.