Formal negotiations for the ECSC began in 2011 and continued in 2014, when Prime Ministers Abbott and Modi renewed the two countries` commitment to a balanced and mutually beneficial agreement quickly. In April 2015, then-Australian Trade Minister Andrew Robb visited India. Free Trade Agreement/Free Trade Area (FTA): Whenever some countries meet and decide to abolish tariffs, import quotas and preferences for most (if not all) goods and services exchanged between them, they create a free trade agreement. The aim of a free trade area is to reduce barriers to trade so that trade can develop through specialisation, division of labour and, above all, comparative advantages. A free trade agreement can be a (bilateral) agreement between two countries or many (multilateral) countries. For example, the U.S.-Canada Free Trade Agreement was signed in 1988. Please note that each customs union, every common trade market, every economic union, the Customs and Monetary Union and the Economic and Monetary Union also have a free trade area. NAFTA is such a trading bloc. A free trade agreement involves a reduction or complete abolition of tariffs on most trade, which allows for the free movement of goods, and, in more advanced agreements, the reduction of restrictions on investment and institutions allowing the free movement of capital and the free provision of services. If countries go beyond the free trade agreement and agree on a higher level of economic integration, including improving the attractiveness of capital and human resources and expanding trade and investment, this would lead to the ECSC or EPA. The EPA/EPA is similar to a free trade agreement (FTA) that fully covers trade in goods and services and investment, as well as intellectual property rights. Australia and India are on the road to concluding the Comprehensive Economic Cooperation Agreement (ECSC), which is expected to provide a significant boost to investment in both sides and further strengthen bilateral economic relations.
Independent models made in 2008 showed that an ECSC between Australia and India could result in a net increase in Australian GDP of $32 billion and India`s GDP of $34 billion over 20 years.