Australia-India Relations: The Australian Parliament on Tuesday (22 November) approved the Free Trade Agreement (FTA) with India. Now both the countries will decide with mutual consent from which date this agreement will come into force.
Australia’s PM Anthony Albanese gave this information in a tweet. He wrote, “BIG NEWS: Our Free Trade Agreement with India has been passed by Parliament.” The India-Australia Economic Cooperation and Trade Agreement (AI-ECTA) required approval by the Australian Parliament before it could come into force. The Union Cabinet approves such agreements in India.
What did India say?
Commerce and Industry Minister Piyush Goyal said in a tweet, “Glad that the Australia-India Economic Cooperation and Trade Agreement has been passed by the Australian Parliament.” sets the stage for India to take forward trade relations to their full potential and accelerate economic growth on a large scale.
Goyal said in a program in Delhi on Tuesday that now the Australian government will take approval from its executive council. Apart from this, the ministry will have to take the green signal from the Union Cabinet here. He said that these approvals need to be obtained at the earliest. Along with this, he added that this agreement is fair and good for India.
— Anthony Albanese (@AlboMP) October 22, 2022
What would be the benefit?
An official said that now both the parties will decide with mutual consent from which date this agreement will come into force. Customs authorities will issue a notification in this regard. After the FTA comes into force, over 6,000 products from India, including textiles, leather, furniture, jewelery and machinery, will get duty-free access to the Australian market.
Under the agreement, Australia is offering zero customs duty access to India for about 96.4 per cent of its exports (on a value basis). There are many products in this, which currently attract customs duty of four to five percent in Australia. In the financial year 2021-22, India exported goods worth $8.3 billion to Australia and imported $16.75 billion.