Trade deal delivers tariff cut for India exports
INDIA and Australia have recently agreed to a bi-lateral trade agreement on a number of products including almonds . In a historic first , the Department of Foreign Affairs and Trade ( DFAT ) has brokered a deal that delivers a significant selling advantage into one of the biggest almond markets in the world . Until now both inshell and kernel incurred significant import duties from India , which purchases more than 150,000 tonnes of almonds from around the world annually . In 2021-22 Australia ’ s market share was just under 24,000 tonnes . The new trade deal will deliver Australian exporters and Indian buyers a 50 % reduction in the tariffs on inshell and kernel for the first 34,000 tonne sold into the market each year . The 34,000 quota was a surprise for the Australian industry , but it is far cry from the free trade agreement advantage enjoyed for unlimited volume in China over the past four years . The DFAT negotiators have told the ABA that the intention is to return
to the negotiating table with India to resume talks on a broader FTA including lowering almond tariff even further . The Tariff Rate Quota ( TRQ ) for almonds was viewed as “ a foot in the door ” for further talks at a later date . The result was a culmination of more than seven years of industry representations to various Government Trade Negotiation teams dealing with India and a testament to the lobbying done behind the scenes by the likes of former ANIC chairman Chris Joyce and others . DFAT has since confirmed the following details around how the quota system will work :
• The 34,000 quota will be over a calendar year
• The Tariff Rate Quota licences will be issued to exporters by the Australian Government
• The overall quota volume will be managed by the Indian Department of Commerce
• The volume calculated is tear weight per container , not kernel weight equivalent .
The earliest this quota will come into play is October . It might be later depending on changes in government and how quickly it comes into law in both Indian and Australian parliaments . The proportion to be shipped in 2022 will be calculated by the days left in the year from when it comes in play divided by 365 and multiplied by 34,000 . Further discussions will be held with DAWE officials on how the quota licenses being granted across Australian almond exporters . The ABA will be arranging a webinar with the key people in DAWE and DFAT to run a Q and A webinar for all Australian exporters to go through the exact detail on how the process will work .
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