Chennai, Jan 11 (FN Bureau) The India-Australia Economic Cooperation and Trade Agreement (ECTA) has the potential to double bilateral trade between the two countries to USD 50 billion in the next five years. A press release issued after an awareness meeting on India-Australia ECTA held here today said the deal is a win-win situation for both the nations. India will get cheaper raw materials such as coal, aluminium for Indian industries, which will help the country become more competitive and provide quality goods for Indian consumers at affordable prices. Australia, which largely imports most of their finished products, will also benefit from the agreement. India will benefit from the preferential market access provided by Australia on 100 per cent of its tariff lines — 98.3 per cent tariff lines from Day One. The rest of the tariff reduction will be in a phased manner for five years. On the other hand, Australia will get preferential access to over 70 per cent of India’s tariff lines. Around 40 per cent of the tariff lines will get zero-duty access immediately.
The segments in Tamil Nadu that can gain larger market share in Australia are textiles and garments, gems and jewellery, leather and non-leather footwear, handicrafts, automobile parts and engineering products. The Agreement encompasses cooperation across the entire gamut of bilateral economic and commercial relations between the two friendly countries, and covers areas like Trade in Goods, Rules of Origin, Trade in Services, Technical Barriers to Trade (TBT), Sanitary and Phytosanitary (SPS) measures, Dispute Settlement, Movement of Natural Persons, Telecom, Customs Procedures, Pharmaceutical products, and Cooperation in other areas. During the outreach seminar on Indo-Australia ECTAMs. Sarah Kirlew, Consul General, Australian Consulate General, said “The agreement which came into force on December 29, 2022 will support strategic interests and economic growth of both the countries”.
Dr. M. Balaji, Union Government Joint secretary, said India Australia being commonwealth countries have a parliamentary democracy and similar legislative processes. He also pointed out that India-Australia ECTA will provide immediate market access at zero duty accounting 98.3% of tariff lines, accounting for 96.4% of India’s exports in value terms to Australia. He said during the FY 21-22, export form Tamil Nadu to Australia was to the tune of USD 384 million and during the current financial year from April to October export form TN was 322 million USD and it is expected that during this year export form Tamil Nadu to Australia may cross USD 500 million. Rajalakshmi Devaraj, I.D.A.S, Zonal Additional DGFT, Chennai in her address said “The removal of trade barriers between India and Australia serves the commercial interests of both nations. The competitiveness of Indian exports will increase due to immediate zero duty access and will result in higher market share”.