Trade Minister Don Farrell confirms easing of Australian-Indian tariffs

Australia’s crop farmers are among the big winners from a long-awaited trade deal with India. See which tariffs have been cut.

Two tariff cuts with India in quick succession are setting Australian crop farmers up for a happier new year after a saturated 2022 season.

Federal Trade Minister Don Farrell today confirmed the Australia-India Economic Cooperation and Trade Agreement (ECTA) had come into effect.

Trade Minister Don Farrell. Photo: Emma Brasier

Entry into the ECTA means Australian exporters will benefit from two tariff cuts, the first effective today and the second as the calendar flips over to 2023 this weekend — January 1.

Mr Farrell said tariffs had been eliminated on 85 per cent of Australian exports to India — including wool, lamb, barley, oats and fresh rock lobsters.

“Australia and India are natural trading partners – this agreement will unlock the enormous potential in our trading relationship,” the Trade Minister said.

Tariffs on a further five per cent of exports, including macadamia nuts, avocados, berries, seafood, infant formula, breakfast cereals and pasta have also been lowered today and will be phased down to zero within six years.

Rupanyup farmer Andrew Weidemann.

Grain Producers Australia southern region director Andrew Weidemann said the complete removal of Indian tariffs on barley and oats was a win for the sector.

He told The Weekly Times more detail was needed on what tariffs, if any, would apply to pulses in the new year.

“There’s been a lot of work in the Australian-Indian trade relationship and now we’re starting to see the benefits from that,” Mr Weidemann said.

“Getting Australian pulses into India tariff-free would be a big win for us, so we’ll keep an eye on the detail there. India is a huge market for chickpeas and pulses.

“Much of India has experienced drought in recent times and pulse production is down as a result. It’s a politically sensitive area for any Indian government, because the agricultural vote is very powerful there, but we’re on the right track.”

The Trade Minister also announced Australian producers of premium wine, lentils, almonds, oranges and strawberries were now receiving significant reductions to high Indian tariffs, although he didn’t specify the magnitude of the cuts.

VFF grains group president Ashley Fraser said moves towards free trade with India had long been an ambition for the sector.

“Australia’s got a proud history of free trade and when other countries want to engage in that free trade with us, it’s always welcome news,” he said.

“We’ve had one of the wettest years in history across a big slab of cropping country. Many farmers will barely recover costs this year. So any moves towards improving trade links will inject some confidence.”