On April 2, 2022, Australia and India signed the Australia-India Economic Cooperation and Trade Agreement, a significant step towards strengthening economic ties between the two countries. Valued at $12.6b, the agreement is expected to eliminate tariffs on more than 85% of Australian Goods Exported to India.
Key sub-sectors benefiting from these tariff reductions are:
Agribusiness
Tariff reductions to benefit sheep meat, wool, wine and other produce such as beans, nuts, cherries, avocados and berries.
Labour and tourism
Mutual recognition of professional qualifications, licensing and registration procedures between professional services bodies. In addition, 1,000 young Indians will be able to participate in the working holiday visa program every year to contribute to the workforce and tourism in order to support post-COVID recovery.
Education
The length of stay for an Indian Student with a bachelor’s degree with first class honours will be extended from two to three years post study in Science, Technology, Engineering or Mathematics (STEM) and Information and Communications Technology (ICT) sectors.
Energy and resources
Elimination of tariffs on entry into force for coal, alumina, metallic ores, including manganese, copper and nickel; and critical minerals including titanium and zirconium. LNG tariffs will be bound at 0 per cent at entry into force.
Pharmaceutical
Tariffs on pharmaceutical products and certain medical devices will be eliminated over five and seven years .
Grant Thornton Australia welcomes this historic agreement and is well equipped to assist clients and businesses both in India and Australia. To understand how you can leverage this agreement, please reach out to our experts below.
