India–Australia Trade Talks Stall over Dairy and Wine Tariffs

Negotiations on the second phase of the Comprehensive Economic Cooperation Agreement (CECA) between India and Australia have stalled following India’s decision to reject deeper tariff cuts on dairy and wine. Though the 2022 interim deal included phased reductions, further concessions on products like cheese, whey, and premium wines are politically sensitive. Indian farm lobbies and regional industry groups, particularly those in Gujarat and Maharashtra, have opposed accelerated tariff liberalisation.

Australia maintains that faster cuts would benefit both nations by boosting market access and lowering costs for consumers, especially in niche dairy segments. Australian negotiators emphasize the complementary nature of export portfolios. Nevertheless, India's agricultural policymakers argue that preserving farmer incomes and protecting its nascent wine industry remains a priority, complicating compromise.

Both governments maintain a mutual desire to conclude the CECA by year-end, but the current impasse highlights the complex interplay of domestic politics and international economic goals. While interim gains in non-agricultural sectors may still be achievable, full alignment on sensitive products will require delicate balancing, and the outcome will have implications for broader conversations on India’s trade liberalisation with other key partners.