Bilateral trade pact: Australia to cooperate with MSMEs in Kerala

KOCHI: The signing of the landmark India-Australia Economic Cooperation and Trade Agreement (IAECTA) is expected to open up more opportunities for the state’s food sector in Australia. An Australian delegation led by Australian Consul General Sarah Kirlew, former cabinet minister and Australia-India Business Council head Jody Mackay and AIBC National Associate Chair Irfan Malik visited Kochi recently to discuss the possibilities of the IAECTA, which came into effect on December 29 last year.

The Australian delegation promised to further its cooperation with micro, small and medium enterprises (MSMEs) in the state. “The agreement will be highly beneficial for the sectors such as gems and jewellery, textiles, leather, footwear, furniture, food, and agricultural products, engineering products, medical and pharmaceuticals and automobiles,” said Sarah Kirlew, Australian Consul General. On the other hand, she said, India will be offering preferential access to Australia on over 70% of its tariff lines, including lines of export interest to Australia. The Australian delegation also held discussions with commercial and industrial representatives in Kochi.

The IAECTA is expected to increase trade between the two sides to $45-50 billion over five years, from the current estimate of $27 billion, and create over 10 lakh additional jobs. In the interactive session organised under the leadership of Federation of Indian Chambers of Commerce & Industry in collaboration with JDGFT Kochi, Australia-India Business Council and Australian Consul General Office, Officer on Special Duty Venu Rajamani, Additional Director General of Foreign Trade Bibin Menon, Joint Director of Foreign Trade Harilal were present. Venu Rajamani said the agreement is highly beneficial for students from Kerala. He said the pact is not only for the benefit of the business community but also for the common man.

“Under the agreement, Indian graduates from STEM (Science, Technology, Engineering, and Mathematics) will be granted extended post-study work visas for two to three years. Australia will also set up a programme to give visas to young Indians pursuing working holidays in Australia,” said Jodi Mckay.