{"id":6846,"date":"2022-12-30T11:23:58","date_gmt":"2022-12-30T05:53:58","guid":{"rendered":"https:\/\/www.indianwineacademy.com\/articles\/?p=6846"},"modified":"2023-01-01T10:17:24","modified_gmt":"2023-01-01T04:47:24","slug":"item_2_923","status":"publish","type":"post","link":"https:\/\/www.indianwineacademy.com\/articles\/item_2_923\/","title":{"rendered":"Indo- Australian FTA operational Today to make Aussie Wines Cheaper"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"6846\" class=\"elementor elementor-6846\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4720b6a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4720b6a\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-53f09f7\" data-id=\"53f09f7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-70aab53 elementor-widget elementor-widget-text-editor\" data-id=\"70aab53\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 20-08-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>Posted: Friday, 30 December 2022 11:40<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-ad9e937\" data-id=\"ad9e937\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-cccb2a7\" data-id=\"cccb2a7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1b4aea3 elementor-widget elementor-widget-text-editor\" data-id=\"1b4aea3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<u>If you Like this article, please click\n<iframe style=\"border: none; overflow: hidden; width: 120px; height: 21px;\" src=\"https:\/\/www.facebook.com\/plugins\/like.php?app_id=173955395995712&amp;href=https%3A%2F%2Fwww.facebook.com%2Fwineguyindia&amp;send=false&amp;layout=button_count&amp;width=120&amp;show_faces=false&amp;action=like&amp;colorscheme=light&amp;font=arial&amp;height=21\" frameborder=\"0\" scrolling=\"no\"><\/iframe><\/u>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9669605 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9669605\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b62f3ec\" data-id=\"b62f3ec\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c0e78f1 elementor-widget elementor-widget-text-editor\" data-id=\"c0e78f1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"row\"><div class=\"col-sm-12\"><h1 class=\"articlepagetitle_heading\">Indo- Australian FTA operational Today to make Aussie Wines Cheaper<\/h1><div class=\"articlepageintroline\">Dec 30: The much awaited FTA between India and Australia that was to become operational on 29 December has a date with the Indian wine importers, since all wines costing $5 and above will see a fall in import duties from 50-75%, depending upon their FOB value, but the drop may not be observed overnight, writes Subhash Arora who feels the cheaper wines may also see a drop, despite the duties not reduced for them but a fall in prices due to the current glut in the market.<\/div><div class=\"articledata\"><p>Perhaps the fastest Foreign Treaty signed by the Indian government since independence, the Indo- Australian FTA was signed in April this year against all odds of success. It was ratified by the Australian Parliament despite a change in their Federal government, though with slight delay, on 29 November, 2022. It has become operational today, after a 30-day waiting period as mandated by the Treaty.<\/p><p>It will soon result in a graded reduction of the import prices of the $5+ fob Australian wines. But even the sub $5 wines are expected to become cheaper because of the mirrored competition between these two segments. Due to the current glut of wines in Australia, several producers are expected to offer even these sub $5 wines at lower prices.<\/p><p><strong>Also Read : <a href=\"https:\/\/www.indianwineacademy.com\/articles\/item_3_920\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #990000;\">Australia Parliament ratifies Indo Australian FTA (ECTA)<\/span><\/a><\/strong><\/p><p>It is interesting that the Indian wine lobby could not sustain the pressure to consent to the duty reduction which they had very successfully managed in the previous negotiations started in 2007 and discontinued when Congress Party ruled the country and they stuck to their correct Stand of the sustenance of the Indian wine industry being in jeopardy with lowering of duties for cheaper wines.<\/p><p><strong>Also Read : <a href=\"https:\/\/www.indianwineacademy.com\/item_3_907.aspx\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #990000;\">Australian Wines to get Cheaper in India with FTA signed Today<\/span><\/a><\/strong><\/p><p>The milk lobby in India managed to block any move to make it possible to import milk products from Australia. The dairy industry ensured that all milk and allied dairy products were kept outside the purview of the FTA billed as the India-Australia Economic Co-operation and Trade Agreement (ECTA) in Australia. But the wine industry had resigned to the change in political scenario where the government was keen to sign the Treaty, looking at its potential benefits-with only the first harvest becoming operational today.<\/p><p>The agreement will see a reduction in customs duty on Australian wines in a graded fashion. The current 150 per cent import duty will be reduced to 100 per cent and subsequently to 50 per cent in 10 years for wines costing $5 a bottle. Duty on those costing up to $15 will be reduced to 75 per cent and subsequently to 25 per cent in the same period.<\/p><p>Interestingly, this is perceived to become the de-facto fall in the duties in the structure when the FTA between the European Union and India is signed. The Indian producers hope that this pattern will help increase the wine consumption in India.<\/p><p><strong>Also Read : <a href=\"https:\/\/www.indianwineacademy.com\/item_4_897.aspx\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #990000;\">Australia hopeful of an early FTA with India<\/span><\/a><\/strong><\/p><p>Wine is only one aspect of the ECTA. Over 96 per cent of India\u2019s exports to Australia will now get zero duty benefit whereas the reverse holds for only 85 per cent of Australia\u2019s exports to India.<\/p><p>The bilateral trade is expected to double to $45 billion in five years thanks to this Treaty. According to estimates, $23 billion worth of goods will become duty-free from today. Pharma industry ingredients imported from Australia will get cheaper with complete waiver of import duty; this will go a long way to give a boost to the Make in India endeavour promoted by PM <strong>Narendra Modi<\/strong>.\u00a0Travel, study and work rules for students will also be relaxed, opening up new avenues for students wishing to go for further Studies to Australia. With duty waiver, the Garment exports will also see an explosive increase.<\/p><p>Wine export could also see a marginal increase with the withdrawal of import duty in Australia as a niche market-thanks to the Indian diaspora and restaurants there serving Indian cuisine.<\/p><p><strong>Also Read : <a href=\"https:\/\/www.indianwineacademy.com\/item_5_893.aspx\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #990000;\">FTA: Australia- India set Ambitious Target of December 2022<\/span><\/a><\/strong><\/p><p>While the Australia deal is the first time India has discussed and agreed on relaxation for wines, it seems it will form the basis for all future negotiations, including the European Union. Reduction in duties on Scotch whisky is a major demand from the UK during the India-UK free trade negotiations, which has already gone past the original Diwali deadline.<\/p><p>Union Commerce Minister <strong>Piyush Goyal<\/strong> struck a positive cord today when he said he expects at least two more free trade agreements to be signed up in 2023. Negotiations are scheduled with the UK, European Union and Canada-one hopes that the EU gets to finalise the Agreement with India. \u201cIndia today works from a position of strength, we negotiate with confidence,\u201d Goyal reportedly said, when he confirmed that the country will sign at least two such free trade agreements.<\/p><p>Wine lovers in India hope and the European producers hope that the FTA with the European Union would be one of the Treaties to take effect in 2023 so that it becomes operational in 2024- 17 years after it was initiated!<\/p><p><strong>Subhash Arora<\/strong><\/p><p>29 December, 2022<\/p><\/div><div class=\"articledata\">\u00a0<\/div><\/div><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Posted: Friday, 30 December 2022 11:40 If you Like this article, please click Indo- Australian FTA operational Today<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[82,80],"tags":[135,134],"class_list":["post-6846","post","type-post","status-publish","format-standard","hentry","category-other-headlines","category-top-headline","tag-aussie-wines","tag-indo-australian"],"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","slider-bg":"","card-grid":"","card-list":"","morenews-featured":"","morenews-large":"","morenews-medium":""},"author_info":{"display_name":"admin","author_link":"https:\/\/www.indianwineacademy.com\/articles\/author\/admin\/"},"category_info":"<a href=\"https:\/\/www.indianwineacademy.com\/articles\/category\/other-headlines\/\" rel=\"category tag\">Other Headlines<\/a> <a href=\"https:\/\/www.indianwineacademy.com\/articles\/category\/top-headline\/\" rel=\"category tag\">Top Headline<\/a>","tag_info":"Top Headline","comment_count":"0","_links":{"self":[{"href":"https:\/\/www.indianwineacademy.com\/articles\/wp-json\/wp\/v2\/posts\/6846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.indianwineacademy.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indianwineacademy.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indianwineacademy.com\/articles\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indianwineacademy.com\/articles\/wp-json\/wp\/v2\/comments?post=6846"}],"version-history":[{"count":16,"href":"https:\/\/www.indianwineacademy.com\/articles\/wp-json\/wp\/v2\/posts\/6846\/revisions"}],"predecessor-version":[{"id":6874,"href":"https:\/\/www.indianwineacademy.com\/articles\/wp-json\/wp\/v2\/posts\/6846\/revisions\/6874"}],"wp:attachment":[{"href":"https:\/\/www.indianwineacademy.com\/articles\/wp-json\/wp\/v2\/media?parent=6846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indianwineacademy.com\/articles\/wp-json\/wp\/v2\/categories?post=6846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indianwineacademy.com\/articles\/wp-json\/wp\/v2\/tags?post=6846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}