Australian Parliament Approves Free Trade Agreement with India
· ECTA will be Greatly Welcomed by our Business Communities: PM
The Prime Minister, Narendra Modi has thanked Australian PM, Anthony Albanese as Australian parliament approves free trade agreement with India.
Mr. Modi also said that Economic Cooperation and Trade Agreement (ECTA) will be greatly welcomed by our business communities, and will further strengthen the India-Australia Comprehensive Strategic Partnership.
In response to a tweet by Australian PM, Anthony Albanese, the Prime Minister tweeted;
"Thank you PM @AlboMP! The entry into force of IndAus ECTA will be greatly welcomed by our business communities, and will further strengthen the India-Australia Comprehensive Strategic Partnership."
'Boost for pharma'
The FTA will also provide a big boost to the pharmaceutical industry in India.
Medicines which have gone through rigorous approval process by USA & UK will now have fast tracked mechanism to get approval in the Australian Regulatory system, Goyal noted.
'Opportunities across sectors'
The agreement opens up significant new opportunities across sectors for Indian businesses.
"India’s textiles and gem and jewellery sectors have been keenly waiting for the agreement to be able to sell to high income earners in Australia," Goyal said.
The agreement, once implemented, will provide duty-free access to the Australian market for over 6,000 broad sectors of India, including textiles, leather, furniture, jewellery and machinery.
Under the pact, Australia is offering 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.
The India-Australia Economic Cooperation and Trade Agreement (AI-ECTA) needed ratification by the Australian parliament before its implementation. In India, such pacts are approved by the Union Cabinet.
Meanwhile, Australian trade minister Don Farrell in a statement said that the 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.
Farrell added that the agreement will support businesses to grow, to offer more employment opportunities, and will give Australian consumers more choice at the checkout.
He further said that Australia will work closely with the Indian government to implement the trade agreement "as soon as possible".
This is the first time in Australia’s history, where they are giving 100 per cent tariff lines with most lines on entry into force and 113 lines within a period of 5 years.