New Delhi, November 22
India and Australia would now implement the free trade agreement on a mutually agreed date as the Australian Parliament on Tuesday approved the pact between the two countries, an official said on Tuesday.
“BREAKING: Our Free Trade Agreement with India has passed through parliament,” Australian Prime Minister Anthony Albanese said in a tweet.
BREAKING: Our Free Trade Agreement with India has passed through parliament. (📷 with @narendramodi at the G20) pic.twitter.com/e8iG3gpTgr
— Anthony Albanese (@AlboMP) November 22, 2022
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.
Commerce and industry minister Piyush Goyal said in a tweet: “Delighted that India-Australia Economic Cooperation amp; 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 amp; spur massive economic growth.”
Last week, the Joint Standing Committee on Treaties of Australia recommended the Australian government to ratify the pact.
After the ratification, both sides will decide a date to implement the pact and customs authorities will also issue a notification a day before the implementation, the official 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.
