Opening ‘Biggest Economic Doors’ Australia Signs ‘Historic’ Trade Deal With India

Synopsis – According to a press release by the Prime Minister of Australia, the goods exported to India from Australia are valued at over $12.6, which have grown by 91 percent over the period of 10 years. 

India and Australia have signed an agreement what is being termed the ‘Historic Trade Deal‘. The interim free trade deal will is focused on economic cooperation that will increase the easing of tariffs on goods, a range of products, and between both countries.

The trade deal was signed by the Australian Trade Minister Dan Tehan and his Indian counterpart India, Piyush Goyal, Australia-India Economic Cooperation and Trade Agreement (AI ECTA). Indian Prime Minister (PM) Narendra Modi and Australian PM Scott Morrison were present in the virtual ceremony and were the representatives of the signed AI ECTA.

According to a press release by the Prime Minister of Australia, the goods exported to India from Australia are valued at over $12.6, which have grown by 91 percent over the period of 10 years. 

The press release reads,

Tariffs will be eliminated on more than 85 percent of Australian goods exports to India (valued at more than $12.6 billion a year), rising to almost 91 percent (valued at $13.4 billion) over 10 years.

“Australian households and businesses will also benefit, with 96 percent of Indian goods imports entering Australia duty-free on entry into force,” it added.

The free trade deal between both countries will minimize tariffs on Australian goods exported to India by 85 percent. Indian PM, Narendra Modi during the signing ceremony said,

Consensus on such an important agreement in such a short period of time shows the mutual trust between the two countries. This is truly a watershed moment for our bilateral relations.

Australian PM Scott Morrison said,

This agreement opens a big door into the world’s fastest-growing major economy for Australian farmers, manufacturers, producers and so many more. 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.

“This is great news for lobster fishers in Tasmania, wine producers in South Australia, macadamia farmers in Queensland, critical minerals miners in Western Australia, lamb farmers from New South Wales, wool producers from Victoria, and metallic ore producers from the Northern Territory. This agreement has been built on our strong security partnership and our joint efforts in the Quad, which has created the opportunity for our economic relationship to advance to a new level,” he added.

Reportedly, with the trade valued at $24.3 billion, India was Australia’s seventh-largest trading partner along with the country’s sixth-largest goods and services export market. Also, a major point of the agreement is that exports of dairy and beef have been excluded from the same citing political equations in India.