INDO-AUSTRALIA TRADE RELATIONS

ChinmayaIAS Academy - Current Affairs January 11, 2023 Bilateral Relations, GS2 Leave a comment 184 Views

The Engineering Export Promotion Council of India (EEPC) on Tuesday organised an outreach programme to raise awareness among exporters from various sectors on Indo-Australia trade dynamics in light of the Australia-India Economic Co-operation and Trade Agreement (ECTA).
The bilateral trade agreement came into force on December 29, 2022, and now, 85% of Australian goods exports by value to India are tariff free, and this will rise to 90% in the next six years. High tariffs have been reduced on some additional products as well.
Additionally, 96% of imports from India are now tariff free, which will rise to 100% in four years.
“There has never been a better time in India-Australia relations,” said Sarah Kirlew, consul general, Australian Consulate, Chennai.
As part of the agreement, coal, some Australian wines, minerals and seafood, especially lobsters, will be cheaper in the Indian market.
Australia is also offering zero duty access on textiles, jewellery, furniture, leather, among other sectors and products.
“Indian students in Australia will now have post-study work rights in STEM fields and a visa that combines work and leisure will be available beyond 2024,” Ms. Kirlew said, and also announced that the Australian Prime Minister would visit India twice this year.
“India and Australia complement each other regarding their trade requirements,” said M. Balaji, Joint Secretary, Ministry of Commerce and Industry, Government of India.
Some of the sensitive products in India that are not a part of the agreement include milk and dairy, chickpeas and gold, silver and iron ore.
“Gems, jewellery and the pharmaceutical sector will benefit from the zero duty, and the textile sector has the potential to grow by 30% in the next five years,” he added.
The programme included an interactive session between exporters and dignitaries to clarify any questions they might have. Representatives from the Export Inspection Agency and Export Credit Guarantee Corporation also addressed the gathering.