India-Australia Economic Cooperation and Trade Agreement receives approval from Australian Parliament
Once India-Australia Economic Cooperation and Trade Agreement is implemented, it will provide duty-free access to the Australian market for over 6,000 broad sectors of India. It will include textiles, furniture, leather, machinery, and jewelry.
India-Australia Free Trade Agreement: India and Australia will now implement the free trade agreement on a mutually agreed date as the Parliament of Australia on November 22, 2022, approved the pact between the two countries.
The India-Australia Economic Cooperation and Trade Agreement (AI-ECTA) needed ratification by the Parliament of Australia before its implementation. In India, such pacts are approved by the Union Cabinet.
The Union Commerce and Industry Minister Piyush Goyal informed that now the Australian Government will take approval from their executive council and the Ministry from the Union Cabinet here.
India, the global trusted partner!— Piyush Goyal (@PiyushGoyal) November 22, 2022
Australia's Parliament passing the #IndAusECTA is a big recognition of India's growing global stature.
Our IT industry, students and many labour intensive sectors will soon reap the benefits of this landmark deal. pic.twitter.com/sNTrHTt59B
India-Australia Free Trade Agreement: Key Highlights
1. Once the pact is implemented, the agreement will provide duty-free access to the Australian market for over 6,000 broad sectors of India. It will include textiles, furniture, leather, machinery, and jewelry.
2. Under the pact, Australia is offering zero-duty access to India for about 96.4 percent of exports from day one. This covers many products that currently attract 4-5 per cent customs duty in Australia.
3. Labor-intensive sectors which would gain immensely include textiles and apparel, a few agricultural and fish products, footwear, leather, sports goods, furniture, machinery, jewellery, electrical goods and railway wagons.
4. India’s goods exports to Australia stood at $8.3 billion and imports from the country aggregated to $16.75 billion in 2021-22.
What will happen once the India-Australia Trade Agreement receives approval?
After the approval from the Australian Parliament, the Australian Government will now take approval from their executive council and the Minister from the Union Cabinet in India.
As per Union Minister Piyush Goal, these approvals are very much doable. The next step will be the harmonization of codes and customs regimes so that both countries can enter into force at an early date.
He also asked the steel industry to take benefit of zero duty in the Australian market and push their exports. Last week, the Joint Action Committee on the Treaties of Australia recommended the Australian Government to ratify the pact.
After the ratification, both sides will decide a date to implement the pact, and customs authorities will also issue a notification a day before the implementation.
The India-Australia Economic Cooperation and Trade Agreement was signed on April 2, 2022, between Piyush Goyal and Dan Tehan in a virtual ceremony.
The pact which is set to provide zero-duty access to 96 per cent of India’s exports to Australia including shipments from key sectors such as engineering goods, textiles, gems and jewelry, apparel, and leather.
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