IND-AUS 'Historic' Trade deal: Longer stay for top Indian STEM grads, Equitable tariffs & Much More
News by NRI Herald Australia 2nd April 2022
Australia and India will sign an interim free trade deal after more than a decade of protracted and sometimes torturous negotiations, cementing a foreign policy win for the federal government.
India and Australia will on Saturday sign an interim trade deal encompassing goods and services that is expected to cement strategic relations between the two sides and enhance bilateral trade while lowering tariff barriers. This trade deal also mark the history where two countries have looked at each other without the myopic view of skill migration & visas.
The Coalition has hailed the agreement as a significant step in its efforts to diversify export markets and reduce Australia's economic dependence on China by opening up new opportunities in a large and expanding economy.
The “early harvest” agreement is much wider than originally flagged and will be notified to the World Trade Organization, indicating it has the legal status of a full free trade deal. It will cut tariffs on a range of Australian exports to India, including coal, lentils, lobsters and rare earths.
"Breaking- after more than a decade of protracted negotiations, Australia and India will sign an interim free trade deal on Saturday. It's a more comprehensive agreement than some anticipated + will be registered with the WTO like a full FTA. But some key sectors still excluded", Tweeted Foreign Affairs (Asia Pacific) reporter, Australian Broadcasting Corporation. Based in Parliament House, Canberra
As per the interim deal Tariffs will be reduced to zero more gradually for other Australian exports for eg avocados, nuts, several bean, cherries and a host of berries.
"Tariffs will be eliminated on more than 85 per cent of Australia's export goods to India and that will rise to almost 91 per cent over 10 years", Mr Stephen Dziedzic said.
The "early harvest" agreement between Australia and India is a comprehensive agreement close to a full free trade agreement.
The agreement will include cuts and phased reductions of tariffs on a range of Australian exports, including coal, sheepmeat and lentils.
Major exports such as dairy and beef have been excluded from the interim agreement because of domestic political opposition in India.
This is lower than other FTAs struck by Australia. And Australia has not been able to convince India to tear down barriers to Australian goods in sensitive sectors including chickpeas, dairy- they're excluded
Major boost to Top Indian STEM Graduates from AUS universities.
Indian community in Australia is thrilled with the trade deal. One of the Indian community leader Dr. Yadu Singh Tweeted:
"Thrilled to know Australia-India trade deal is being signed today. The historic deal will accelerate this strategic relationship. Working holiday visa for young Indians is a smart move! " Tweeted Mr Yadu Singh.
Australia has has opened up 1,000 working holiday visas to Indian backpackers and will allow top Indian IT, engineering, mathematics and science graduates to stay slightly longer in Australia post-study.
"With the deal being finalised just ahead of the Morrison government calling the next general election, Australia’s ruling coalition hailed the agreement as a “significant step in its efforts to diversify export markets and reduce Australia’s economic dependence on China by opening up new opportunities in a large and expanding economy”, the Australian Broadcasting Corporation reported.
Mr Morrison said the agreement would create "enormous trade diversification opportunities for Australian producers and service providers" who were hoping to reach "around 1.4 billion consumers in India".
"This agreement opens a big door into the world's fastest-growing major economy for Australian farmers, manufacturers, producers and so many more," he said.
The government is also talking up the strategic benefits of the agreement, saying New Delhi's willingness to strike a deal with Australia demonstrates the growing convergence between the two countries.
Australia’s trade minister Dan Tehan was quoted as saying by ABC:
“Tariffs will be eliminated on more than 85% of Australia’s export goods to India and that will rise to almost 91% over 10 years"
The Trade Minister and his Indian counterpart, Piyush Goyal, will sign the interim agreement Saturday afternoon in a virtual ceremony witnessed by Prime Ministers Scott Morrison and Narendra Modi.