Australian Parliament passes Free Trade Agreement with India
Australia’s Parliament passed bilateral free trade agreement with India. The deals are crucial for Australia to diversify its exports from the troubled Chinese market to India and to forge new bilateral trade relations. "Our Free Trade Agreement with India has passed through parliament," tweeted Australian PM Anthony Albanese.
Australia's Parliament approved bilateral free trade agreements with Britain and India, leaving those partner nations to bring the deals into force. The agreements are essential for both Britain's desire to establish new bilateral economic contacts after leaving the European Union and Australia's need to diversify its exports from the unstable Chinese market to India.
The House of Representatives passed the legislation with ease on Monday, and the Senate voted them into law on Tuesday
Australian PM Anthony Albanese tweeted, "Our Free Trade Agreement with India has passed through parliament.”
Don Farrell, the minister of trade, claimed that India has proven its dedication to the two countries' economic ties by the calibre of the agreement reached. A crucial element of the government's trade diversification policy, according to Farrell, is forging closer commercial connections with India. The pact also ensures that Australia will not be excluded from improved trade and market access which may arise from agreements India subsequently negotiates with other nations, he said.
Once the deal is put into effect, more than 6,000 diverse industries from India, including textiles, leather, furniture, jewellery, and machinery, would have duty-free access to the Australian market. According to the agreement, Australia will grant zero-duty access to India starting on day one for around 96.4% of exports (by value). This applies to a wide range of goods that are now subject to a 4%–5% customs charge in Australia.
Textiles and apparel, a few agricultural and seafood products, leather goods, furniture, sporting goods, jewellery, equipment, electrical items, and railroad trains are all labor-intensive industries that would greatly benefit. In 2021–22, India's goods exports was USD 8.3 billion while its total imports were USD 16.75 billion.