A new trade agreement between Australia and India came into force on 29 December after approval from the Australian Parliament. The Australia-India Economic Cooperation & Trade Agreement (AI-ECTA) eliminates tariffs on more than 85% of goods exported to India. The sectors that stand to benefit the most are agri-food, health, education and mining. For agri-exports, the agreement eliminates tariffs on almost 90% of current agri- exports to India. For example, wool tariffs have been completely removed, tariffs on avocados, onions, cherries, and berries will be eliminated over six years, barley and oats are now duty-free, and tariff on lentils has been reduced by 50%. Nutrano, a citrus exporter that already exports mandarins to India, is positive about the benefits the agreement would bring, reported the Australian Trade and Investment Commission. ‘The new trade agreement with India will certainly make a difference. Tariff reductions mean we should be able to sell our citrus at more affordable prices. This will allow us to move more volume into market,’ said Mathew Roberts, Export Manager for Nutrano. Wine exports will also benefit significantly, as the previous tariff of 150% will be reduced over the course of 10 years. Minister for Trade and Tourism Don Farrell sees multiple benefits for Australians. ‘These agreements will support our businesses to grow, to offer more employment opportunities, and will give Australian consumers more choices at the checkout,’ he said. On the other side of the table, 98.3% of tariffs which account for 96.4% of India’s exports to Australia in value terms, will be removed. The remaining 1.7% will become duty-free over five years. Labour-intensive sectors subjected to 5% import duty by Australia will have immediate access to the market duty-free. The removal of 100% of these tariffs on products such as textiles, apparel, leather, footwear, gems and jewellery will put India on an equal playing field with countries such as Vietnam. India hopes this deal will encourage other countries, such as the UK and Canada, to consider similar agreements.