Ref: MR/CIR/2022-2023/00119 26th December 2022
To: Members of the Council
Sub: India-Australia ECTA to come into force from 29 December 2022 and provide duty free market Access to MMF and MMF blended Textiles and Technical Textiles.
Dear Member,
The Government of India and the Government of Australia signed the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) on 2 April 2022, in the presence of the Hon’ble Prime Minister of India, Shri Narendra Modi and Hon’ble Prime Minister of Australia, Mr. Scott Morrison. The Agreement will come into effect from 29 December 2022 and Indian Textile exporters will enjoy Duty-Free access in Australian markets from day one.
The Ind-Aus ECTA has been a historic FTA that our country is signing with a large, developed economy of the world after more than a decade. Australia is also the third OECD country after Japan and South Korea with which India has signed FTA. The Ind-Aus ECTA is giving zero duty market access to Indian textiles, leather, gems, and jewellery products, etc. in Australian markets and it will give a huge fillip to Indian exports of the said segments to the entire Ocenia region.
Under the Ind-Aus ECTA, exports from India will be getting zero duty access on 6367 tariff lines accounting for about 98 of the total tariff lines including the MMF and Blended textiles and technical textiles in Australia, immediately after the agreement comes into force on 29 December 2022. Currently, Indian exports in these sectors face a tariff disadvantage of 5% vis-à-vis competitors in the Australian market such as China, Thailand, Vietnam, South Korea, Japan, Indonesia and Malaysia. Removing this tariff disadvantage, the ECTA can enhance India’s merchandise exports significantly.
For details and reference of our member-companies, the Tariff Schedule of Australia (Annex 2A), is attached.
For clarity and understanding the details of the Ind-Aus ECTA Member-companies are requested to attend the seminar/outreach programme on India-Australia ECTA tomorrow 27th December 2022.
If you have not yet registered to attend the outreach programme, then request to do so immediately and confirm participation by duly fill in confirmation slip (attached) and email to Mr. Niketan Bhosale, Jr. Executive Assistant, FIEO (WR) at niketanbhosale@fieo.org marking a copy to the Council at ed@srtepc.in, aed@srtepc.in.
Thanking you,
Yours faithfully,
S. BALARAJU
EXECUTIVE DIRECTOR
