Australia’s Parliament has ratified bilateral free trade agreements with India and Britain, marking a significant step in strengthening trade relations with these two nations. These agreements are seen as pivotal for Australia’s efforts to diversify its exports beyond the Chinese market and for Britain as it seeks to establish new bilateral trade partnerships post its exit from the European Union.
The bills for these trade agreements easily passed through Australia’s House of Representatives on Monday, and the Senate officially enacted them on Tuesday. However, it’s important to note that the agreements still require ratification by the British and Indian parliaments before they can take effect, and as of now, neither nation has completed this process.
Australia’s Trade Minister, Don Farrell, expressed his appreciation for India’s commitment to the bilateral economic partnership, highlighting the quality of the deal struck between the two countries. He stressed the importance of closer economic ties with India as a critical element of Australia’s trade diversification strategy.
Regarding the agreement with Britain, Farrell described it as “crucial to boosting our growth.” This agreement is expected to facilitate more than 99% of Australian goods exports to Britain being duty-free, encompassing products like sheep meat, beef, dairy, sugar, and wine. Likewise, the deal will eliminate taxes on 90% of Australian goods exported to India, including items like meat, wool, cotton, seafood, nuts, and avocados.
Australian Prime Minister Anthony Albanese engaged in discussions with Indian Prime Minister Narendra Modi and British Prime Minister Rishi Sunak during the recent Group of 20 summit in Indonesia. Albanese confirmed his plans to visit India in March to further advance the agreement that was initially signed in April.
The agreement with Britain, signed in December by the Johnson administration, has faced criticism from subsequent British governments for not delivering more substantial benefits to Britain.
Once both countries officially notify each other in writing that the supporting legislation has been passed by their respective parliaments, the trade agreements will come into force 30 days later.
In related developments, Australian leaders welcomed Nzogi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), to the national capital, Canberra, on Tuesday. Discussions with Okonjo-Iweala included the implementation of outcomes from the WTO’s conference in June. During that conference, the WTO reached agreements and commitments aimed at various objectives, including the protection of ocean fish stocks, increasing COVID-19 vaccine production in the developing world, enhancing food security, and reforming the 27-year-old trade body to address its recent challenges.
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