New trade deal opens Indian opportunity

Australia has signed an historic trade agreement with India that will make exports to that nation cheaper and create new opportunities for workers and businesses. Tariffs will be eliminated on more than 85 per cent of Australian goods exports to India under the Australia-India Economic Commercial and Trade Agreement (AI-ECTA). The resources sector will benefit from the elimination of tariffs on entry for coal, alumina, metallic ores - including manganese, copper and nickel; and critical minerals including titanium and zirconium. LNG tariffs will be bound at 0 per cent at entry into force. Australian Chamber of Commerce and Industry chief executive Andrew McKellar welcomed the interim agreement as the start of an important new phase in Australia’s relationship with one of its most significant economic partners. “India is one of the world’s fastest growing economies and is a key economic and trading partner with two-way trade between our countries worth $24.3 billion in 2020," he said. "The AI-ECTA gives Australian exporters preferential access to a market of nearly one and a half billion customers. “Business has played an important role in the development of the AI-ECTA and welcomes the opportunities this partnership provides for the comprehensive and substantial exchange of goods and services, including tourism and education." Minerals Council of Australia chief executive officer Tania Constable said India represented an enormous potential opportunity for Australian mining and METS companies, and exporters more generally. Minerals Council of Australia chief executive officer Tania Constable. "A deeper resources trade and investment relationship with India will broaden our economic, technology and trade coordination adding to the deep people-to-people links between the two nations," she said."The mining industry looks forward to further co-operation and economic integration as the two nations finalise the comprehensive agreement and pave the way for expanded trade and investment flows to the benefit of both economies and the region."India is the world’s largest democracy and the world’s fastest-growing major economy, with GDP projected to grow at nine per cent in 2021-22 and 2022-23 and 7.1 per cent in 2023-24. Prime Minister Scott Morrison said the agreement would create enormous trade diversification opportunities for Australian producers and service providers bound for India, valued at up to $14.8 billion each year. “This agreement opens a big door into the world’s fastest growing major economy for Australian farmers, manufacturers, producers and so many more,” the Prime Minister said. “By unlocking the huge market of around 1.4 billion consumers in India, we are strengthening the economy and growing jobs right here at home." Benefits for professionals and service suppliers Both countries will facilitate the recognition of professional qualifications, licensing, and registration procedures between professional services bodies in both countries. Australian services suppliers in 31 sectors and sub-sectors will be guaranteed to receive the best treatment accorded by India to any future free trade agreement partner, including in: higher education and adult education; business services (tax, medical and dental, architectural and urban planning; research and development; communication, construction and engineering; insurance and banking; hospital; audio-visual; and tourism and travel. Australia will also provide new access for young Indians to participate in working holidays in Australia. Places in Australia's Work and Holiday program will be set at 1,000 per year and Australia will have two years to implement the outcome. This is expected to contribute to both workforce requirements and to boost tourism to support our post-COVID recovery.

New trade deal opens Indian opportunity

Industry Queensland

Related News

Changing of the guard for regional development group

Liftoff for survey hoped to bring game-changing results

Savannah eyes Electric Light gold exploration target

Get access to breaking mining news, now.