PERTH (miningweekly.com) – The Minerals Council of Australia (MCA) has welcomed an interim trade agreement between Australia and India, saying it would eliminate 71% of tariffs, covering 91% of Australia’s exports to India, including a suite of Australian minerals.

The minerals falling under the trade agreement include natural sands, magnesium, manganese, copper, nickel, cobalt, bauxite, coal, coke and semi-coke of coal, alumina, tin, tungsten, molybdenum, silver ore, zirconium, antinomy, lithium, niobium, many rare earths, titanium, vanadium and phosphates.   

Liquefied natural gas tariffs will be bound at 0% at entry into force.

Trade Minister Dan Tehan over the weekend signed the historic trade agreement, which also meant that 96% of Indian goods imports entered Australia duty-free on entry.

“In 2020, India was Australia’s seventh-largest trading partner, with two-way trade valued at A$24.3-billion, and sixth largest goods and services export market, valued at A$16.9-billion. Our government’s goal is to lift India into our top three export markets by 2035, and to make India the third-largest destination in Asia for outward Australian investment,” said Tehan.

Prime Minister Scott Morrison said the agreement would create enormous trade diversification opportunities for Australian producers and service providers bound for India, valued at up to A$14.8-billion each year.

“This agreement opens a big door into the world’s fastest-growing major economy for Australian farmers, manufacturers, producers and so many more,” the Prime Minister said. 

“By unlocking the huge market of around 1.4-billion consumers in India, we are strengthening the economy and growing jobs right here at home.”

MCA CEO Tania Constable said that the interim agreement, ahead of finalising the Comprehensive Economic Cooperation Agreement (CECA) expected in 2022, is an important milestone in Australia deepening and developing its trade and investment relationship with India.

It also recognises the mutual benefits of supply chain security and cooperation delivering prosperity and a common effort on global challenges.

“India has represented an enormous potential opportunity for Australian mining and METS companies, and exporters more generally. Australian mining has a reputation as a reliable and responsible partner in supporting global economic development, secure supply chains and decarbonisation.

“A deeper resources trade and investment relationship with India will broaden our economic, technology and trade coordination adding to the deep people-to-people links between the two nations,” said Constable.

“The mining industry looks forward to further cooperation and economic integration as the two nations finalise the comprehensive agreement and pave the way for expanded trade and investment flows to the benefit of both economies and the region.”