Australian parliament approved the free trade agreement (FTA). India and Australia would now implement the agreement on a mutually agreed date. Notably, the India-Australia Economic Cooperation and Trade Agreement (AI-ECTA) needed ratification by the Australian parliament.
The two countries signed the agreement in April this year. Australian Prime Minister Anthony Albanese said that the new trade agreements with India would strengthen existing trade and economic relationships between the two countries. “These new agreements will create new opportunities for trade diversification and great outcomes for Australian business and Australian families,” Albanese said.
Union Minister for Commerce and industry, Piyush Goyal, expressed happiness over the agreement with Australia. Goyal, in a tweet, said, “Delighted that India-Australia Economic Cooperation & Trade Agreement has been passed by Australian Parliament. A result of our deep friendship, it sets the stage for us to unleash the full potential of our trade ties & spur massive economic growth.”
As per the Union Minister, the IT sector is the biggest gainer. He stated, ” IT industry has shared with our industry that if this tax goes away, which has now been approved by the Australian parliament, they can see a quantum jump in their business with Australia.”
Notably, the FTA will provide duty-free access for over 6,000 broad sectors of India to the Australian market. These include furniture, textiles, machinery, leather, the wine industry and jewellery.
Goyal stated, “It reflects the strong bond PM Narendra Modi has built with the Government in Australia. It is a big recognition of India’s growing stature & capabilities that India’s businesses provide to the world both in goods and services.”
Australian High Commissioner to India Barry O’Farrell also expressed happiness over the approval of the FTA by the Australian Parliament. “I am thrilled to see implementing legislation for the Australia-India Economic Cooperation and Trade Agreement pass through both houses of Australia’s Parliament without dissent,” O’Farrell said.
Notably, goods worth USD 8.3 billion were exported by India to Australia in 2021-22. Meanwhile, India imports goods worth USD 16.75 billion from Australia.
