Home World Australian Parliament approves free trade agreement with India; to help double bilateral trade : The Tribune India

Australian Parliament approves free trade agreement with India; to help double bilateral trade : The Tribune India

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PTI

New Delhi, 22 November

Australia’s parliament on Tuesday approved the free trade deal it signed with India in April, paving the way for the deal to be rolled out on a mutually agreed date. in about five years.

The agreement is expected to enter into force from January 2023.

The agreement, signed on 2 April, provides duty-free access to the Australian market for more than 6,000 broad-sector Indian exporters, including textiles, leather, furniture, jewelery and machinery.

Labor-intensive sectors such as textiles and apparel, limited agricultural and fishery products, leather, footwear, furniture, sporting goods, jewellery, machinery and electronics will benefit significantly.

Minister of Commerce and Industry Piyush Goyal said the deal is likely to reach US$45-50 billion from the current US$31 billion over the next five to six years.

This was the third deal signed by the government, following the trade deal between Mauritius and the UAE.

“Australia will open 100% of the line (product) with no quota restrictions. We see job opportunities,” Goyal told reporters here.

After obtaining Australian Executive Council approval and the Indian President’s assent, the two countries will set a date to implement the agreement.

The minister did not commit to any date, but official sources said the deal could go into effect from 1 January next year.

“Breaking news: Free trade deal with India passed parliament,” Australian Prime Minister Anthony Albanese said in a tweet.

In reply to the tweet, Prime Minister Narendra Modi tweeted: The entry into force of IndAus ECTA will be greatly welcomed by the business community and will further strengthen the comprehensive strategic partnership between India and Australia. “

The Indo-Australia Economic Cooperation and Trade Agreement (ECTA) required ratification by the Australian Parliament before implementation. In India, such agreements are approved by the Union Cabinet.

Goyal said both codes and customs regimes would be harmonized so that they could “go into effect sooner”.

He added that the deal was fair and good for India.

In a statement, Australia’s Trade Minister said the ECTA will enter into force 30 days (or another time mutually agreed) after each party has confirmed in writing that they have completed their domestic requirements.

“The Albanian government has worked hard to expedite all necessary processes to enable Australia to implement the free trade agreement by the end of 2022,” the statement said.

Australia’s Minister for Trade and Tourism Don Farrell said he would work closely with the Indian government to implement a trade deal “as soon as possible”.

Under the agreement, Australia provides duty-free access to India from day one on approximately 96.4% of its export value (in value terms). This covers many products currently subject to a 4-5% tariff in Australia.

In 2021-2022, India’s merchandise exports to Australia will reach US$8.3 billion and imports from the country will reach US$16.75 billion.

The Australian Parliament has also approved an amendment to the Double Taxation Avoidance Agreement (DTAA). This is a move that will help the Indian IT sector to operate in that market.

This will stop taxing offshore income of Indian companies providing technical support in Australia.

Goyal said India’s IT sector was the “biggest beneficiary” of the amendment.

“If taxes were reduced, they would make a huge leap forward in doing business with Australia,” he added.

The move could lead to savings of around US$200 million annually for the more than 100 Indian IT companies operating in Australia, according to estimates.

On the start of negotiations to expand the scope of India-Australia economic cooperation and trade agreement, the Additional Director General for Foreign Trade (DGFT) Tapan Mazumdar said it could start from January next year. rice field.

Issues that may come to light at that meeting include government procurement and digital trade.

Goyal also promised that India would be the “first time” to obtain Indian chef and yoga instructor visas, and that all children studying in Australia would have the opportunity to work in Australia according to their level of education.

He added that this would be the first agreement with a developed country in a decade.

He also said the agreement would help farmers who grow grapes for making wine to explore more business opportunities in Australia.

“Today there are 6,000 grape farmers[in India]growing grapes for wine…the wine industry is really welcoming it. We can get into the field,” he added.

Commenting on the move, Ajay Sahay, Secretary General of the Federation of Indian Export Organizations (FIEO), said that the agreement opens up prospects for domestic export opportunities as more than 98% of tariffed items have a tariff advantage from day one. said he was

“We will also obtain duty-free imports of important raw materials such as coal, alumina, manganese, copper, nickel, wool and leather, which will give our manufacturing and exporting a more competitive edge,” said Sahai. added.

Vinod Giri, Secretary General of the Confederation of Indian Alcoholic and Beverage Companies (CIABC), said the deal will take trade ties between the two countries to new heights.

“The FTA is a win-win for both parties. On the one hand, it will open up the Indian market for quality Australian wines, and on the other hand, the Indian wine industry will benefit further from the expertise and investment from its Australian counterparts and evolve. “It will help us,” said Giri.PTI

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