A new deal has emerged between Australia and India that will allow them to trade goods and services almost tariff-free.
👉 Background: Last year, two-way trade between Australia and India was worth around $27.5 billion. Sounds reasonably big - but Australia and China's two-way trade was worth $251 billion. Wowee.
👉 What happened: But now, the Australia-India Economic Co-operation and Trade Agreement is here! Last week Australian Parliament passed this new trade deal that helps Australia and India trade goods and services almost tariff-free (ie without taxes).
👉 What else: The big winners were the wool and wine industries as well as coal, lentils and sheep meat. Ultimately, this is all about Australia reducing its dependency on China and expanding its relationship with India.
💡For centuries, bilateral trade deals have been an effective way to boost the economies, and relationships, of trading nations.
💡And this new trade deal suggests that, potentially, Australia and India could become big trade buddies over the coming decades.
💡India has nearly 1.5 billion consumers and is expected to become the world’s 2nd largest economy by 2050. So now, there’s hope that Aussie exporters could find new, lucrative opportunities in India.
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