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Australia to ask India for tariff cuts on more farm products in CECA talks.
Apr 28, 2022

Will look to increase opportunities for Australian agricultural commodities, which contribute to Indian manufacturing: India Economic Strategy Australia plans to ask India for tariff reduction on a number of agricultural commodities such as nuts, pulses, grains, oilseeds, packaged food and cotton, which were not included in the free trade agreement (FTA) signed between the two countries earlier this month. The tariff concessions will be sought as part of the negotiations for the  full-fledged comprehensive pact, likely to begin within the next two months 
 
'The government is working to position Australia as India’s primary partner in agribusiness, key supplier of agricultural commodities and critical partner in technical knowledge….customs duties and import tariff remain key issues for our industries and we will continue to seek tariff reduction in negotiations towards the Comprehensive Economic Cooperation Agreement,' according to the Department of Foreign Affairs and Trade (DFAT), which has come up with an update on the country’s India Economic Strategy to 2035.
 
Progress on technical market access issues in both markets helped two-way agricultural trade exceed $714 million in 2020, the report pointed out.
 
Bilateral trade
The India-Australia FTA, signed on April 2, is an ambitious pact under which Australia has agreed to provide zero-duty market access for 96.4 per cent value of Indian exports on the first day of implementation of the agreement, while India has agreed to do so for 85 per cent of Australian goods. The FTA seeks to double bilateral trade to $50 billion by 2030.
 
Agricultural products, however, have been largely excluded from the FTA, because of the sensitivity of the sector in India. But with both countries agreeing to start negotiations on a full-fledged CECA, which is to include more products and sectors such as government procurement and digital trade within 75 days, there is a scope to get tariff reduced on more items.
 
'Commodities such as nuts, pulses, grains, oilseeds, cotton and wool remain among Australia’s priorities. In addition, we are also working to expand market opportunities for Australian exporters beyond our traditional export strengths, including in horticultural products, packaged food and beverages,' said the update.
 
Launching the Indian Economic Strategy Update on Tuesday, Australia’s High Commissioner to India Barry O Farrell said that India and Australia have complementary economies and Australia remains committed to lift India into its top three export markets by 2035 and make India the third-largest destination in Asia for outward Australian investment.
 
Australia will look to increase opportunities for Australian agricultural commodities, which contribute to Indian manufacturing such as Australian wool and cotton for India’s textile producers, the update said. 'The government will also look to India as a source of agricultural chemical and fertiliser imports, as part of our broader efforts to diversify supply chains for key agricultural inputs,' the report said.
    
thehindubusinessline.com

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