Bestinau got that-
Australia and India will sign an interim free trade agreement after more than a decade of lengthy and sometimes torturous negotiations, which will see the federal government win a foreign policy victory.
Most important points:
The early harvest agreement between Australia and India is a comprehensive agreement that is close to a full free trade agreement
The agreement includes tariff cuts and incremental cuts on a range of Australian exports, including coal, mutton and lentils.
Major exports such as dairy and beef are excluded from the interim agreement due to domestic political opposition in India
The coalition has hailed the agreement as an important step in its efforts to diversify export markets and reduce Australia’s economic dependence on China by creating new opportunities in a large and growing economy.
The early harvest agreement is much broader than originally stated and will be reported to the World Trade Organization indicating that it has the legal status of a full free trade agreement.
It will cut tariffs on a range of Australian exports to India, including coal, lentils, lobster and rare earths.
The government praises its success in removing Indian barriers to Australian mutton and wool, as well as a phased cut in tariffs on wine and a host of other agricultural products, including avocados, cherries, nuts, blueberries, almonds, oranges, mandarins, pears and strawberries .
Commerce Secretary Dan Tehan said the deal would strengthen ties with a critical partner and boost trade, declaring it a “historic” deal.
“There’s an extensive resemblance here to the world’s fastest growing major economy.”
Major exports excluded from deal
But while the deal is broader than expected, it still doesn’t offer the same depth of market access offered by Australia’s other free trade agreements.
That’s partly because India remains a more protectionist country than many of Australia’s other major trading partners.
Some Australian producers will see only limited or gradual gains, while other major Australian agricultural exports – including dairy, chickpeas and beef – have been completely excluded from the interim agreement due to domestic political opposition in India.
That is likely to disappoint producers from those sectors who have pushed for easier access to the Indian market, although Mr Tehan said the government would continue to push India to reduce these trade barriers in future negotiations.
Australia has also resisted Indian pressure on Australia to relax labor market testing rules for its workers, though it has opened 1,000 working holiday visas to Indian backpackers and top Indian IT, engineering, math and science graduates stayed in Australia a little longer. post-study.
While the initial gains from the agreement may be modest, the government says this agreement is still an important step in strengthening trade ties with a nation emerging as a major economic and strategic power.
Morrison said the agreement would create “enormous trade diversification opportunities for Australian manufacturers and service providers” who hoped to reach “about 1.4 billion consumers in India”.
The government also talks about the strategic benefits of the agreement, saying New Delhi’s willingness to negotiate a deal with Australia demonstrates the growing convergence between the two countries.
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.