India, Australia sign trade pact in virtual ceremony

NEW DELHI

India and Australia on Saturday signed a trade agreement that removed tariffs on 96% of Indian exports, a government statement said.

The India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA) was signed in a virtual ceremony by Indian Commerce Minister Piyush Goyal and Australian Trade Minister Dan Tehan, said an Australian.

Indian Prime Minister Narendra Modi and his Australian counterpart Scott Morrison also witnessed the virtual ceremony.

“Signing of IndAus ECTA in such a short span of time reflects the depth of the mutual confidence between the two countries,” Modi said, following the signing of the agreement.

“On the basis of this agreement, together, we will be able to increase the resilience of supply chains, and also contribute to the stability of the Indo-Pacific region,” he added.

The Indian government statement said that sectors like textiles and clothes, jewelry, agricultural and fish products, leather, footwear, and furniture will benefit from duty-free access right away.

Morrison, for his part, called the agreement a “milestone” in the growing relationship between the two countries.

“IndAus ECTA will further deepen the warm and close ties between the people of the two countries by expanding work, study and travel opportunities. It will send a powerful signal to our businesses that ‘one of the biggest doors’ is now open as two dynamic regional economies and like-minded democracies are working together for mutual benefit,” he added.

Indian Commerce Minister Piyush Goyal said the agreement will help take the bilateral trade volume from $27 billion to $40-50 billion in the next five years.