The recently signed trade deal between Australia and India will boost the Australian mining sector and create new jobs and opportunities in both countries.
Under the Australia-India Economic Cooperation and Trade Agreement (AI ECTA) signed on Saturday:
- Tariffs will be eliminated on on entry into force for coal, alumina, metallic ores, including manganese, copper and nickel; and critical minerals including titanium, lithium, cobalt, tungsten and zirconium.
- LNG tariffs will be bound at 0 per cent at entry into force.
- Engineering, higher education and a range of construction services will be among 31 Australian services suppliers sectors and sub-sectors guaranteed to receive the best treatment accorded by India to any future free trade agreement partner
As a priority strategic partner in the Indo-Pacific, and Australia’s fifth largest energy and resources market, India is a major investor in Australian resources with significant (and growing) demand for critical minerals products and other resources.
The AI ECTA will assist in realising the potential of the Australia-India economic relationship and provide certainty in the supply of high quality and competitively priced critical minerals essential in the production of mobile phones, flat screen monitors, wind turbines, electric cars and solar panels.
Minister for Trade, Tourism and Investment Dan Tehan said the trade deal would build on existing partnerships and investment streams that already existed between Australia and India in critical minerals.
“Australia is the logical choice to meet India’s growing demand for mineral resources and we are also well-placed to meet India’s growing demand for mining equipment, technology and services and have a competitive edge in mining consultancy; exploration technologies; mining software; processing components and systems; environmental and mineral quality technologies and safety equipment; and mining education and skills,” Mr Tehan said.
“Our Government is working to secure Australia as a reliable, safe producer of critical minerals to meet growing global demand, this will support jobs and businesses in Australia and also guarantee robust supply chains for our trading partners.”
Minister for Resources and Water Keith Pitt said the agreement is further good news for our resources sector and will build on our international reputation as reliable and leading supplier.
“India has become a significant market for Australian resources exporters, particularly through the COVID pandemic, and this agreement will take our relationship to a new level,” Minister Pitt said.
“We have many of the critical minerals the world needs to manufacture and develop the technology of today and tomorrow, and this arrangement will bring mutual benefits to both our countries.
“The FTA will strengthen ties in traditional resources with the Bravus Mine in Queensland about to begin its first coal exports to India, which is seeking to ensure its long-term energy security.”