Tariffs to India for citrus might be reduce in half later this month following the finalisation of the Australia India Economic Cooperation and Trade Agreement (AI-ECTA).

Both the Australian and Indian governments have now ratified the settlement, with a deliberate implementation date of 29 December, 2022.

“We are delighted to see a great initial outcome for the Australian citrus industry achieved by the Australian Government,” Citrus Australia CEO Nathan Hancock stated.

“In a meeting this week I stressed to Trade and Tourism Minister Don Farrell that the citrus industry was urgently awaiting the finalisation of the agreement so it’s great to hear it has now been finalised. Citrus exporters with an interest in India will be ready to take advantage of the new opportunity in the 2023 season.”

This settlement will permit Australian citrus exporters to export oranges and mandarins to India below a tariff-reduced quota system.

The present 30 per cent tariff will scale back to fifteen per cent as soon as the settlement enters into drive. The decreased tariff applies to the primary 13 700 tonnes yearly. The quota system might be managed by the Australian authorities and extra particulars might be offered to business when accessible.

Exports of Australian citrus have been as excessive as 7800 tonnes prior to now and Citrus Australia expects to see enchancment on that consequence within the coming years. Citrus Australia will proceed to work with the Australian Government to hunt additional discount within the tariff over coming years.

“A 50 per cent reduction is a step in the right direction, but we feel significant growth in exports will be achieved when the tariff is further reduced or eliminated altogether,” Mr Hancock stated.

India is a key focus for Citrus Australia and several other exporters.

Earlier this yr, Citrus Australia was awarded a grant from the Department of Agriculture below the Agriculture Trade and Market Access Cooperation program to assist business to determine and develop alternatives for Class 1 citrus in India.

Whilst preliminary investigations have confirmed various challenges for business in rising exports to India, Citrus Australia is assured the market will develop and show to be an necessary vacation spot for Australian citrus exports sooner or later.

The tariff discount will assist drive development alternatives by making Australian citrus extra aggressive towards different suppliers together with South Africa.

Read extra element in regards to the commerce deal right here: Trade take care of India delivers from 29 December | Minister for Trade and Tourism (trademinister.gov.au)

For extra data:
Stephen Cooke
Citrus Australia
Tel: +27 427 124 437 
Email: stephen.cooke@citrusaustralia.com.au