South Australian businesses will be boosted by a free trade agreement with India that will cut tariffs on 85 per cent of Australia’s exports to India.
The new deal includes lentils, lobsters, sheep meat and wool and is expected to gradually rise to cover about 91 per cent of exports in the next decade
Acting Minister for Trade and Investment Andrea Michaels said South Australian businesses have many opportunities.
“From today South Australian businesses have so many more opportunities to capitalise on India’s growing demand for our world class exports, especially in the wine industry,” he said.
“This trade landmark deal means improved market access and removes trade barriers to deliver a massive shot in the arm to local producers, manufacturers and retailers.”
Australian exporters will save around $2 billion a year under the Australia-India Economic Cooperation and Trade Agreement, which is predicted to increase exports to India to approximately $45 billion by 2035.
This trade agreement will benefit consumers significantly, and it will deliver about $5000 million in savings for tariffs on imports of finished goods as well as inputs to Australia’s manufacturing sector.
Patritti Sales Manager and Winemaker Ben Heide said tariffs have been a barrier for further trade of premium wine products, with this agreement on premium wine seeing tariffs slashed-falling from 150 to 75 per cent for bottles over US$15 and 150 to 100 per cent for bottles over US$5.
“While we’ve been exporting non-alcoholic wine to India for the past 17 years, the high tariffs have been an enormous barrier,” he said.
Mr Heide said he was already looking at new ways to grow the distribution networks and was excited about the potential the agreement offers.
“We’ve already taken steps to take advantage of the new export market conditions, with a recent visit to Mumbai to meet with wine trade representatives,” he said.
“We’re excited about the growth potential for our business, but also the South Australian wine industry on the whole.”
President of South Australian chapter of Australia India Business Council Deepa Mathew was encouraged by the ties made between India and Australia and said the deal put Australia ahead of other countries.
“As the first developed country to sign a free trade agreement with India in more than 10 years, it puts Australia a step ahead of other major trading countries, including the UK and US.”
“I am excited about the opportunities for South Australian businesses and the role Australia India Business Council plays as an advocate for strengthening economic business and trade ties with India,” she said.