Indian Free Trade Agreement Welcome News for Australian Macadamia Industry
The announcement of an interim Free Trade Agreement with India is welcome news for the Australian macadamia industry, says Jolyon Burnett, the CEO of the industry’s peak industry body, the Australian Macadamia Society (AMS).
The agreement will see a removal of import tariffs on Australian macadamias into India over the next seven years, making India a very attractive market for Australian macadamia exporters. Currently the tariff is sitting at 32%.
“We congratulate the Australian government on this historic agreement and the years of detailed negotiations that are behind it,” said Mr. Burnett today.
Mr Burnett said the removal of the tariff will align perfectly with the industry’s plans to develop India as one of the largest and most important markets for Australian Macadamias.
“This agreement opens the door to a potentially huge market at a time when the industry is rapidly increasing supply and actively looking for new markets.
“Eating nuts is part of the Indian way of life and with the necessary market research and trade development, India has the potential to be worth up to $100 million to the industry.”
Mr. Burnett said that with support from the Australian Government through its Agricultural Trade and Market Access Cooperation (ATMAC) program, the AMS has recently completed initial market development work which has confirmed the potential of the Indian market.
“This comes at a time when Australian macadamias are facing increasing competition from other producing countries.”
The Australian macadamia industry is worth over $300 million at farm gate and is Australia’s 4th most valuable horticultural export. Over 75% of the crop is exported to more than 40 countries.
“The AMS acknowledges the concerted and sustained efforts of Minister for Trade Dan Tehan and the Minister for Agriculture David Littleproud and their respective departments in bringing this important international agreement to fruition,” said Mr. Burnett.