Tariffs on citrus exports to India will be lowered in half later this month, after the signing of the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA).
Both the Australian and Indian governments have officially accepted the deal, which is set to go into effect on December 29, 2022.
“We are happy to see the Australian Government achieve a terrific first result for the Australian citrus sector,” Citrus Australia CEO Nathan Hancock said.
“I highlighted to Trade and Tourism Minister Don Farrell last week that the citrus sector was eagerly expecting the agreement’s completion, so it’s excellent to hear it has finally been completed.” Citrus exporters having a presence in India will be prepared to capitalise on the new opportunity in the 2023 season.”
This deal will allow Australian citrus exporters to sell oranges and mandarins to India under a quota system with reduced tariffs.
When the deal goes into effect, the existing 30% tariff will be reduced to 15%. The lower tariff is only applicable to the first 13 700 tonnes per year. The Australian government will oversee the quota system, and further information will be offered to business when it becomes available.
Citrus exports from Australia had already reached 7800 tonnes, and Citrus Australia anticipates that figure to rise in the future years. Citrus Australia will continue to engage with the Australian Government to reduce tariffs in the coming years.
“A 50% decrease is a step in the right direction,” Mr Hancock said, “but we believe considerable increase in exports will be achieved when the tax is further cut or abolished entirely.”
Citrus Australia and other exporters are focused on India.
Citrus Australia was given a grant from the Department of Agriculture earlier this year under the Agriculture Trade and Market Access Cooperation programme to assist business in identifying and developing possibilities for Class 1 citrus in India.
While preliminary research has revealed a number of hurdles for industry in boosting exports to India, Citrus Australia is hopeful that the market will flourish and become an important destination for Australian citrus exports in the future.
By making Australian citrus more competitive against other suppliers, notably South Africa, the tariff decrease will assist create growth prospects.