Posted: Monday, 05 September 2022 22:32
Indo Australian FTA likely to be ratified by mid- November
The delay has even added to uncertainties about bilateral trade prospects of the deal. Australia is likely to ratify the interim trade deal signed with India on April2 only by November 18, due to a delay in endorsement by its Parliament following the election of a new labour government there. The unexpected and unusual delay in the ratification of the Economic Co-operation and Trade Agreement (ECTA) by Australia has rattled the Indian IT industry. The deal is expected to increase bilateral trade from $27.5 billion in 2021to $50 billion in five years.
Reportedly, Australian wine producers looking to expand their market share in India, are also miffed that the threshold price agreed was US$5 (A$7.35) and US$15 resp (A$22.05) and not A$5 and A$15 as anticipated and felt it was a genuine oversight on the part of the negotiators. There has also been reportedly some dissatisfaction that bulk wine exports were not considered strongly.
The Indian IT industry would like Australia to stop taxing the offshore income of Indian firms providing technical support there soonest. Australia has to tweak its laws to stop such a taxation, but it is possible only after the FTA known as ECTA (Economic Co-operation and Trade Agreement) in Australia is ratified.
Some of the senior Indian industry executives have started asking for the negotiation for a broader free trade agreement (FTA), which was agreed upon earlier, to start only when the interim deal comes into force, according to a report by Financial Times.
Also read: Australia hopeful of an early FTA with India
In the meanwhile, many Australian bodies and individual wine producers have indicated their interest to participate in Vinexpo India, the international wine and spirits Show to be held on December 1-3 in Delhi and in May 2023 in Mumbai.
For full details of the Treaty and proposed graded reduction of import duties in 10 years after ratification of the Treaty, please read the referenced Articles and Click below:
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