Parliament has approved legislation to implement the Australia-India Economic Cooperation & Trade Agreement (AI-ECTA). Meaning new trade arrangements will come into force on 29 December.
AI-ECTA will eliminate tariffs on 85% of Australian goods exported to India. Australia’s agrifood, health, mining and education sectors are among those that will benefit reports www.austrade.gov.au
Minister for Trade and Tourism, Senator the Hon Don Farrell, welcomed the news, which came as Parliament also approved Australia’s new trade agreement with the UK.
India is currently a small but fast-growing export market for Australian businesses. Goods exports reached $19.3 billion in 2021. This equates to 4.2% of Australia’s total exports.
Agriculture exports set to benefit
The AI-ECTA deal will provide new opportunities for Australian agri-exporters.
The agreement eliminates or reduces tariffs on nearly 90 percent of our current food and agricultural exports to India. This includes sheep meat, wool, horticulture, fisheries, fruit, cosmetics and forestry products.
Australian exporters will also gain preferential tariff quotas for lentils, citrus, almonds, cotton and pears.
Until now, high tariffs have limited exporters to mostly premium markets.