This announcement occurred a few days after PM Anthony Albanese disclosed his visit to India in March 2023. Furthermore, it is on the sidelines of the G20 summit’s 17th edition.
Australia Diversifies Its Duty-Free Exports To India
On Tuesday, the Australian Parliament passed the Free Trade Agreement with India, following a two-month negotiation for a full-fledged FTA. The House of Representatives passed the bills on Monday. The Australian PM Anthony Albanese tweeted the announcement a few days after declaring his visit to India in March 2023. He also informed that PM Narendra Modi would visit Australia for the Quad Leaders’ meeting next year.
Trade Minister Don Farrell highlighted India’s commitment to the bilateral economic partnership showcased in the quality of the deal. This deal supports Australia in diversifying its exports from the volatile Chinese market to India, forging new bilateral trade relations.
Commerce and Industry Minister, Piyush Goyal expected the agreement to escalate bilateral trade from $27.5 billion to $45-50 billion. This change may occur in the next five years.
Constituents of the Fair Trade Agreement Between Australia and India
After implementation, over 6,000 broad sectors in India will gain duty-free access to the Australian market. The sectors include textiles, furniture, jewelry, leather, footwear, fish and agricultural products, sports goods, railway wagons, and machinery. About 96.4% of exports of India from Australia will have zero-duty access from day one. It covers products that currently attract 4-5% customs duty.
The Committee notes the significance of improved tariff reductions in light of the Australia-India Economic Cooperation and Trade Agreement. This agreement was signed on April 2.
The Australian Government looks forward to securing the country’s foothold in the world’s fastest-growing economy. This will enable Australian businesses to expand their operations in the market of one and a half billion consumers.
Additionally, India will soon commence the next round of negotiations over a Free Trade Agreement (FTA) with the United Kingdom.