Australia PM calls India trade pact a ‘transformative’ deal
3 min read . Updated: 09 Mar 2023, 11:35 PM IST
PremiumThe moment marks a turning point in accelerating economic cooperation, says Albanese.
New Delhi: Australian Prime Minister Anthony Albanese on Thursday said the free trade agreement between India and Australia is a “transformative" deal that will unlock the next level of potential in bilateral trade and investment.
Addressing the India-Australia CEO forum in Mumbai, Albanese said the delegation of Australian investors that accompanied him was one of the most serious and high-profile to visit India from Australia.
Albanese was optimistic about the complementarities between the two countries, saying the moment marks a turning point in accelerating economic cooperation.
“Australian fresh lobster and lamb used to be subject to a 30% tariff in India. Now, it’s zero. Tariffs on other products like avocado, citrus and seafood are on a pathway to zero," Albanese said at another event.
The two countries signed the Economic Cooperation and Trade Agreement (ECTA) in April 2022. The deal came into effect in December 2022.
Commerce and industry minister Piyush Goyal, who also participated in the CEO forum, said the goal of doubling bilateral trade, which stands at just over $25 billion, must be “reset" by the businesses and CEOs present, as there was a great potential to increase trade manifold between the two nations.
The forum was organized by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry along with Confederation of Indian Industry (CII) and co-chaired by Anish Shah, managing director and chief executive officer, Mahindra Group, and Shemara Wikramnayake, managing director and chief executive, Macquarie Group.
Australia’s minister for trade and tourism Don Farrell pointed out that lower tariffs arising out of the ECTA would benefit $2.5 billion worth of trade. This will continue to rise further, he added.
The ministers also expressed satisfaction at the progress of bilateral engagements and affirmed their commitment to further deepen and strengthen the Comprehensive Strategic Partnership for mutual benefit.
A four-year extension MoU was also signed between the Confederation of Indian Industry and Business Council of Australia.
The event saw the participation of CEOs of leading companies from India and Australia across sectors like metals and mining, telecom, food processing, education, pharmaceutical, healthcare, medical devices, banking, aviation, education, information technology, auto and institutional investors.
In fiscal year 2022, India was Australia’s ninth largest trading partner. Major exports to Australia include petroleum products, textiles and apparel, engineering goods, leather, pearls, mechanical appliances, iron and steel and gems and jewellery. Major imports include edibles, dyeing extracts, chemicals, wool, minerals and precious stones.
Under the ECTA agreement, India has cut the duty on Australian wines from 150% to 100% for bottles priced at $5, down to 50% in 10 years. The duty on bottles priced at $15 or more has also been slashed from 150% to 75% and will be brought down to 25% in 10 years.
Also, over 85% of Australian goods exports by value to India are now tariff free, rising to 90% in six years, and high tariffs have been reduced on some additional products. In addition, 96% of imports from India are now tariff free, rising to 100% in four years. Under the pact, Australia is offering zero-duty access to India for about 96.4% of exports (by value) from day one. This covers many products that currently attract 4-5% customs duty in Australia.