Australia and India to sign trade deal on Saturday – Australia | Investment News
SYDNEY (Reuters) – Australia will sign a trade deal with India on Saturday that will eliminate tariffs on 85% of Australian goods entering India, helping farmers and miners diversify export markets, the government said. Prime Minister Scott Morrison.
The Australia-India economic and trade cooperation agreement will be signed in a virtual ceremony on Saturday by Trade Minister Dan Tehan and India’s Trade and Industry Minister Piyush Goyal, Australia said in a statement. Friday night.
Morrison and Indian Prime Minister Narendra Modi will witness the signing of the interim agreement, and the two countries will continue to work towards a comprehensive free trade agreement.
Morrison is expected to call a national election within days and wanted to seal the trade deal with India, a decade after talks between the two countries began, ahead of the election campaign.
His government has pushed to diversify export markets to reduce Australia’s dependence on its biggest trading partner, China, after diplomatic disputes led Beijing to sanction Australian products, including wine, lobster and coal.
The India deal unlocks a market of nearly 1.4 billion consumers and would strengthen Australia’s economy, he said.
“This agreement opens a big door into the world’s fastest growing major economy for Australian farmers, manufacturers, growers and many more,” Morrison said in a statement.
Tariffs will be eliminated on more than 85% of Australian goods exports to India worth A$12.6 billion, rising to nearly 91% over 10 years.
Under the agreement, 96% of Indian goods imports will enter Australia duty free.
Tariffs will be eliminated on fresh Australian rock lobster, mutton, wool, copper, coal, alumina and certain critical minerals and certain non-ferrous metals to India.
To boost Australia’s wine industry, tariffs will be reduced from 150% to 50% over 10 years for bottles worth more than US$5, and reduced to 25% over the same period for bottles worth more than 15 USD.
The 30% tariff on Australian agricultural products, including avocados, beans, nuts and berries, will be eliminated over seven years.
Trade Minister Dan Tehan said the deal would boost trade in key minerals, professional services, education and tourism, and lay the foundation for a comprehensive free trade agreement.
Both countries will recognize each other’s professional qualifications and licenses, and Australia will extend visas for Indian STEM students who graduate in Australia with first-class honours.
In 2020, India was Australia’s seventh largest trading partner, with two-way trade valued at A$24.3 billion.
“This agreement builds on our strong security partnership and our joint efforts in the Quad, which has taken our economic relationship to a new level,” Morrison said, referring to the security grouping of India, Australia, United States United States and Japan.
Australia exported A$19.3 billion worth of goods to India in 2021, accounting for 4.2% of Australia’s total exports.
(Reporting by Kirsty Needham; Editing by Chizu Nomiyama)
Copyright 2022 Thomson Reuters.