Recently, India and Australia announced a free trade agreement. However, before the implementation, the Australian Parliament approved the India-Australia Economic Cooperation and Trade (AI-ECTA). Anthony Albanese, the Australian Prime Minister, announced the pact with FTA that received approval in Parliament.
In a statement released, the Australian trade minister opined that the ECTA would come into effect within 30 days. Both parties decided upon the period mutually. As a result, the ECTA will become effective after completing the domestic requirements. After the Agreement’s implementation, there will be access free of duty charges for more than 6000 broad Indian sectors like textile or leather to the Australian market.
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Even Australia will impose no duty charge for access to India for approximately 96.4% of exports. Many products in Australia come under this pact that attracts about 4 to 5% of customs duty. Textile and clothing, agricultural and seafood supplies, leather, furniture, sporting goods, jewelry, footwear, equipment, electrical items, and railroad carriages are all labor-intensive industries that would greatly benefit. In 2021-22, goods exports to Australia from India were 8.3 billion dollars, while imports summed up to 16.75 billion dollars.
Australian enterprises will be able to enter or develop into a market with close to 1.5 billion customers thanks to the deal. The Australian government claims so. It will also safeguard Australia’s position in the global economy, with the highest rate of growth globally.