Indo-Aus trade pact from Dec 29; several goods to get duty-free access

The interim free trade agreement between India and Australia will come into force on Thursday, providing duty-free access to thousands of domestic goods such as textiles, and leather in the Australian market.

The agreement will help almost double the bilateral commerce to USD 45-50 billion in around five years, according to exporters and industry players.

The Economic Cooperation and Trade Agreement (ECTA), which was signed on April 2, would provide duty-free access to Indian exporters of over 6,000 broad sectors, including textiles, leather, furniture, jewellery and machinery in the Australian market.

Labour-intensive sectors which would gain immensely include textiles and apparel, a few agricultural and fish products, leather, footwear, furniture, sports goods, jewellery, machinery, and electrical goods.

Federation of Indian Export Organisations (FIEO) Vice-President Khalid Khan said that Australia is one of the key markets for Indian exporters.

“This agreement will give immense opportunities from Day 1 of implementation that is December 29 for us,” Khan said.

Under the pact, Australia is offering zero-duty access to India for about 96.4 per cent of exports (by value) from the Day 1. This covers many products that currently attract 4-5 per cent customs duty in Australia.

India’s goods exports to Australia stood at USD 8.3 billion and imports from the country aggregated to USD 16.75 billion in 2021-22.

Tariffs on 85 per cent of Australia’s exports to India will be eliminated from Thursday.

“India and Australia signed the ECTA) on April 2 which will come into force on December 29,” Minister of State for Commerce and Industry Anupriya Patel informed Parliament on December 16.

As the initial part of the agreement – ECTA – is coming into force, now both countries would start negotiations to widen the scope of the agreement.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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