Nuts, pulses, grains, oilseeds, cotton, and wool stay excessive on Australia’s precedence checklist. Furthermore, we’re working to broaden market alternatives for Australian exporters past our conventional export strengths, reminiscent of horticultural merchandise, packaged meals, and drinks.

Prime Minister Narendra Modi and his Australian counterpart Scott Morrison (Representational Picture)

Australia intends to ask India for tariff cuts on quite a few agricultural commodities that weren’t included within the free commerce settlement (FTA) signed between the 2 international locations earlier this month, together with nuts, pulses, grains, oilseeds, and packaged meals, and cotton. The tariff concessions might be sought as a part of the full-fledged complete pact negotiations, that are anticipated to start inside the subsequent two months.

According to the Department of Foreign Affairs and Trade, “the government is working to position Australia as India’s primary partner in agribusiness, a key supplier of agricultural commodities, and critical partner in technical knowledge….customs duties and import tariffs remain key issues for our industries, and we will continue to seek tariff reduction in negotiations toward the Comprehensive Economic Cooperation Agreement.”

According to the report, progress on technical market entry points in each markets helped two-way agricultural commerce exceed $714 million in 2020.

The India-Australia Free Trade Agreement (FTA), signed on April 2, is a daring settlement through which Australia agrees to offer zero-tariff market entry for 96.4 p.c of Indian exports on the primary day of implementation, whereas India agrees to do the identical for 85 p.c of Australian items. By 2030, the FTA goals to double bilateral commerce to $50 billion.

Agricultural merchandise, alternatively, have been largely excluded from the FTA as a result of sector’s sensitivity in India. However, with each international locations agreeing to start negotiations on a full-fledged CECA inside 75 days, there’s a probability for tariff reductions on a wider vary of merchandise and sectors, together with authorities procurement and digital commerce.

“Nuts, pulses, grains, oilseeds, cotton, and wool remain high on Australia’s priority list. Furthermore, we are working to expand market opportunities for Australian exporters beyond our traditional export strengths, such as horticultural products, packaged food, and beverages,” the replace said.

Australia’s High Commissioner to India, Barry O Farrell, stated on the launch of the Indian Economic Strategy Update on Tuesday that India and Australia have complementary economies and that Australia stays dedicated to bringing India into its high three export markets by 2035 and making India the third-largest vacation spot in Asia for outward Australian funding.

According to the replace, Australia will search to broaden alternatives for Australian agricultural commodities that profit Indian manufacturing, reminiscent of Australian wool and cotton for India’s textile producers. “As part of our broader efforts to diversify supply chains for key agricultural inputs,” the report stated, “the government will also look to India as a source of agricultural chemical and fertiliser imports.”

First revealed on: 28 Apr 2022, 08:24 IST



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