Our govt works very closely with India to reduce trade barriers: Southwell

It's been successful for both countries, not just for Australian exports to India but also for Indian exports to Australia, John Southwell said

Exports of Australian premium agricultural products to India have increased 59 per cent since the India-Australia Economic Cooperation and Trade Agreement (ECTA) or the interim trade deal came into force over two years ago, John Southwell, Trade and Investment Commissioner at Australian Trade and Investment Commission, told Shreya Nandi in an interview in New Delhi. Edited excerpts:

 

India-Australia ECTA has been in place for over two years, how has agriculture trade performed since then? 

It's been successful for both countries, not just for Australian exports to India but also for Indian exports to Australia. From Australia to India, we’ve seen sheep meat, broad beans, and salmon coming in large volumes – which is great because it complements the production here and also enables consumers to taste a piece of Australia. That otherwise would not have been available had the trade agreement not been in place. The other thing that has come in over the last 18 months has been Australian avocados, due to technical market access being granted by the Indian government. You also have Australian macadamias that are making their entry into the market, which previously was at a 30 per cent tariff rate and is now down to 12.9 per cent, but it's heading down to zero by January 1, 2028. Exports of Australian premium agricultural products to India have increased 59 per cent since our first free trade agreement came into force. Indian exports to Australia have also increased, so that shows it's a win-win. Australia actually imports more agricultural products from India than Australia sends back in the other direction. That shows a win-win and a great match between Australia and India. 

Have businesses also experienced any non-tariff barriers in the last two years? 

Every country has non-tariff measures that enable the protection of human, plant, and animal health. Australia also has them. Our government works very closely with the Indian government to work on ways to reduce barriers to trade, and ensure we protect human, plant, and animal health. The Indian government has been gracious to grant technical market access for Australian avocados to India and recognise different treatment protocols for things like macadamias, which means that Australian macadamias can be treated in a way that is both cost-effective and meets India's requirements. 

India and Australia are  negotiating CECA. What areas in agriculture need opening up? 

Both countries have expressed keenness to complete a compre–hensive economic cooperation agreement, and leaders of both countries have said so. The name comprehensive means that it is across sectors. It is important to make sure that it is comprehensive across both countries. 

How are wine exports to India faring, and what has been the experience of Australian businesses as far as wine is concerned? 

A couple of things. One is that above $5 a bottle, there has been a reduction in tariffs. Now, it depends on which price point you're talking about, but that will result in about 10 years. It's been about a 25 per cent tariff on bottles over $15 and 50 per cent tariff on bottles of $5 and $15. There's been a lot of interest in the Indian market, and there's also been a lot of interest back about Australian premium wines.  Just in the last two weeks, Australia’s Austrade provided some funding for a wine experience, a wine festival down in Mumbai that was actually put on by the Wine Growers Association of India.  There were wines from two countries present at that festival. By doing that, we were supporting the Indian wine industry by providing sponsorship for that to occur, as well as showcasing imported Australian wines. We're also providing technical cooperation and regulatory discussions between Australia and India around furthering the wine industries of both countries.