The Australian Parliament has successfully passed bilateral free trade agreements with India and Britain. These agreements are now awaiting ratification by the British and Indian parliaments to become effective. The primary objective of these deals is to enable Australia to diversify its export markets. This is particularly relevant as Australia seeks to expand beyond its current trade relations with China, and as Britain looks to establish new bilateral trade ties post its departure from the European Union. The agreements gained approval from the House of Representatives on Monday and were subsequently ratified by the Senate on Tuesday. Australia’s Trade Minister Don Farrell emphasized the importance of these agreements. He highlighted the agreement with India as a key element in Australia’s trade diversification strategy and described the British deal as essential for promoting economic growth.
Under the terms of the Australia-Britain deal, over 99% of Australian goods exports to Britain will become duty-free. This includes a wide range of products such as sheep meat, beef, dairy, sugar, and wine. Similarly, the agreement with India will eliminate taxes on 90% of Australian exports to India, including items like meat, wool, cotton, seafood, nuts, and avocados. Australian Prime Minister Anthony Albanese had recent discussions regarding these deals with Indian Prime Minister Narendra Modi and British Prime Minister Rishi Sunak at the Group of 20 summit in Indonesia. Additionally, Albanese has planned a visit to India in March to further advance the deal signed in April. The deal with Britain, which was initially signed under then-Prime Minister Boris Johnson’s administration, has been subject to criticism for not offering more advantages to Britain. Once ratified, these deals will come into force 30 days after the participating countries notify each other that their respective parliaments have passed the necessary supporting legislation.
In related developments, World Trade Office Director-General Nzogi Okonjo-Iweala recently visited Canberra, where discussions with Farrell and other ministers included the implementation of outcomes from the World Trade Organization’s conference held in June. This conference addressed various global issues, including ocean fish stock protection, COVID-19 vaccine production in developing countries, food security, and reforms of the trade body.
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