Member for Groom Garth Hamilton has welcomed the trade deal between Australia and India because it will create jobs and opportunities for the region.
On Saturday (2 April), both countries signed the Australia-India Economic Cooperation and Trade Agreement (AI ECTA). Under the deal:
- Tariffs will be eliminated on more than 85 per cent of Australian goods exports to India (valued at more than $12.6 billion a year), rising to almost 91 per cent (valued at $13.4 billion) over 10 years.
- Australian households and businesses will benefit, with 96 per cent of Indian goods imports entering Australia duty-free on entry into force.
- Both countries will facilitate the recognition of professional qualifications, licensing, and registration procedures between professional services bodies in both countries.
- Australian services suppliers in 31 sectors and sub-sectors will be guaranteed to receive the best treatment accorded by India to any future free trade agreement partner
Mr Hamilton said India and Australia shared a strong relationship built on common values and a commitment to a free and stable Indo Pacific.
“India is a great friend of Australia and this trade deal with take that relationship to new heights,” Mr Hamilton said.
“This deal will open up new opportunities for our farmers, miners and service industries which means more jobs in Toowoomba Region and a stronger economy.
“Australian exports to India are expected to grow to around $45 billion by 2035, lifting India into our top three export markets.”
Minister for Trade, Tourism and Investment Dan Tehan said AI ECTA would build prosperity and cooperation between our countries.
“This agreement will turbocharge our close, long-standing and highly complementary economic relationship in areas such as professional services, education and tourism,” Mr Tehan said.
“AI ECTA will create new opportunities for jobs and businesses in both countries, while laying the foundations for a full free trade agreement.”
In 2020, India was Australia’s seventh largest trading partner, with two-way trade valued at $24.3 billion, and sixth largest goods and services export market, valued at $16.9 billion. Our Government’s goal is to lift India into our top three export markets by 2035, and to make India the third largest destination in Asia for outward Australian investment.