Under Ind-Aus ECTA, duties on 100% tariff lines to be eliminated by Australia

Category: General

Country: Australia

By PBNS
November 23, 2022
Estimated reading time: 3 minutes

Addressing a press conference on the Economic Cooperation and Trade Agreement (ECTA), on November 22, Union Minister Piyush Goyal informed that duties on 100 percent tariff lines would be eliminated by Australia under the landmark India-Australia ECTA.

“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”, Union Minister Piyush Goyal in his tweet.

The Ind-Aus ECTA, which was signed on 2 April 2022, is now prepared for ratification in order to begin early implementation with the Ind-Aus ECTA Bill and the DTAA amendment bill passed by the Australian Parliament on November 22.

ECTA would result in creation of 10 lakh new jobs
The Union Minister stated that the ECTA would have a significant positive impact on a number of economic sectors, including the textile, gem, jewellery, and pharmaceutical industries. He noted that the ECTA would result in the creation of 10 lakh new jobs.

The Minister also pointed out that by giving students the chance to work in Australia, the Agreement would also create new chances for India’s service industry. A limit of 1800 visas will be issued each year to Indian chefs and yoga instructors.

Union Minister Goyal noted that the Agreement demonstrated the mutual respect and trust between the two nations as well as India’s rising international standing. He asserted that the ECTA would strengthen India’s ties to Australia, a dynamic democracy that shared many of India’s goals.

“Passing of the historic Ind-Aus ECTA by the Australian Parliament is a huge endorsement of PM Narendra Modi leadership. Unanimous support from stakeholders reinforces the trust people & industry repose in him for prioritising their well-being”, the Minister said.

Agreement also expects to create ample opportunities for investment
ECTA establishes an institutional mechanism to foster and improve bilateral trade. Unlike prior FTAs, choices were made for the first time entirely based on thorough stakeholder discussions with every industry, Ministries, trade organisations, etc. With this agreement, it is anticipated that the total bilateral trade will increase from the current level of US$ 31 billion to US$ 45 to 50 billion in 5 years. By 2026 and 2027, India’s merchandise exports are forecasted to grow by $10 billion. The agreement is also expected to create ample opportunities for investment, and promotion of start-ups, enhancing the job aspect for Indians in Australia.

Australia’s key offers in the services sector
In terms of trade in services, Australia has made a broad range of commitments in roughly 135 subsectors, covering important industries for India, such as IT, ITES, business services, health, and education.  Quotas for chefs and yoga instructors, a post-study work visa of two to four years for Indian students on a reciprocal basis, mutual recognition of professional services and other licensed or regulated occupations, and a work & holiday visa arrangement for young professionals are a few of Australia’s key offers in the services sector.

Additionally, the long-standing issue of double taxation connected to IT or ITES has been resolved under this Agreement, which, according to estimates from the Industry Associations, will result in financial savings of more than US$ 200 million annually.

Australia is an important strategic partner of India and both the democracies are part of the four nation QUAD, Trilateral Supply Chain Initiative, and the Indo-Pacific Economic Forum (IPEF). The trade relationship facilitated through ECTA will open a new chapter on India-Australia Comprehensive Economic Partnership between two vibrant economies with shared interest and trade complementarities.

Courtesy: https://newsonair.com/2022/11/23/under-ind-aus-ecta-duties-on-100-tariff-lines-to-be-eliminated-by-australia/#