'Landmark Moment': As Australian Parliament Ratifies FTA Deal, A Look at What It Means for India

The free trade agreement (FTA) deal will now be implemented by India and Australia on a mutually agreed date, as it passed through the Australian Parliament on Tuesday. The agreement that was signed between the two countries in April this year, needed ratification by the Australian parliament before its implementation. Union Minister Piyush Goyal described it as a “landmark moment”, adding he would like to congratulate the PMs of India and Australia for achieving it. He said there will be harmonisation of codes and customs regime after its implementation.

Australian Prime Minister Anthony Albanese made the announcement through a tweet, not so long after he said he will visit India in March for a bilateral summit. Meanwhile, Australian High Commissioner to India Barry O’Farrell expressed joy over the Australian Parliament’s decision. ”

Here’s look at what the FTA deal means for India and Australia:

• Once the FTA deal is implemented, Australian exporters, businesses, workers and consumers will soon be able to reap the opportunities and benefits of more open trade with India.
• After the ratification, India and Australia 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 (AI-ECTA) will enter into force 30 days (or another mutually agreed time) after the respective parties have confirmed in writing that they have completed their domestic requirements.
• FTA will open a new market for Australian businesses to reach around 1.4 billion consumers in the world’s fastest growing major economy.
• The agreement will support businesses to grow, to offer more employment opportunities, and will give Australian consumers more choice at the checkout.
• Upon implementation, the agreement will provide duty-free access to the Australian market for over 6,000 broad sectors of India, including textiles, leather, furniture, jewellery and machinery.
• Australia has also offered zero-duty access to India for about 96.4 per cent of exports (by value) from day one. This covers many products that currently attract 4-5 per cent customs duty in Australia.
• Textiles and apparel industry, few agricultural and fish products, leather, footwear, furniture, sports goods, jewellery, machinery, electrical goods and railway wagons, would majorly benefit from the deal.

Read all the Latest India News here