India-Australia trade agreement: PM Morrison says deal will open 'big economic doors'

Terming it as one of the biggest economic opportunities, Australia's Prime Minister Scott Morrison said that the trade agreement with India is amongst the greatest in the world today. India is all set to sign an interim free trade deal with Australia after a decade-long protracted phase of negotiations on April 2. 

The deal will eliminate 85% of tariffs on Australian exports to India and will also open the Australia's economy to 1.4 billion consumers, thus strengthening their economy.

The Australia-India Economic Cooperation and Trade Agreement would be signed in a virtual ceremony by Trade Minister Dan Tehan and India's Minister of Commerce & Industry, Piyush Goyal, and both countries would continue to work towards a full free trade deal, the federal government said on Friday.

'Agreement opens a big door,' says Australian PM Scott Morrison

Speaking on India Australia trade deal, Prime Minister Scott Morrison in a statement said, "This agreement opens a big door into the world's fastest-growing major economy for Australian farmers, manufacturers, producers and so many more."

The Australia-India Economic Cooperation and Trade Agreement will be signed on Saturday in the presence of Australia's PM Scott Morrison and Indian PM Narendra Modi as both countries will continue to work on a full free trade deal.

It's pertinent to note the deal will be signed as a full free trade agreement with the World Trade Organisation (WTO), according to a tweet by Stephen Dziedzic, Foreign Affairs (Asia Pacific) reporter, Australian Broadcasting Corporation, based in Parliament House, Canberra.

Eliminating tariffs on 85% of Australian exports, the interim deal will allow Australian goods exports of sheep meat, wool, fresh rock lobsters and some metallic ores. Whereas, India will continue to levy tariffs on Australian goods in sensitive sectors including chickpeas, and dairy. Tariffs for avocados, nuts, several beans, cherries and a host of berries will be reduced to zero in a gradual manner. Meanwhile, tariffs were also reduced (not eliminated) for Australian wine.