A “groundbreaking” trade agreement between Australia and India came into effect as of today removing tariffs on the vast majority of local exports, bringing the two nations’ economies closer together.

Tariffs on 85 per cent of Australia’s exports to India have been eliminated, while high taxes on another 5 per cent of goods are being reduced.

South Australian MP Andrea Michaels described the deal as a boon for her state, which is renowned for its vineyards, noting that India is a major export market for SA’s wineries.

“From today South Australian businesses have so many more opportunities to capitalise on India’s growing demand for our world-class exports, especially in the wine industry,” she said.

The state’s wine exports to India totalled $13.5 million for the year as of October, up 31 per cent from 2021.

Appointed to the positions of Minister for Small and Family Business, Consumer and Business Affairs and Arts in March this year, Michaels has represented the electorate of Enfield in Adelaide’s inner north since 2019.

“This landmark deal means improved market access and removes trade barriers to deliver a massive shot in the arm to local producers, manufacturers and retailers,” she remarked.

Michaels noted the importance of diversifying Australia’s export markets in light of the last two years, which hit the wine industry especially hard with changed trade conditions with China, and the logistical mayhem in global shipping brought on by the COVID-19 crisis.

Born in Cyprus during tumultuous times following the Turkish invasion of the island in 1974, she and her family fled their home when Andrea was just 11 months old.

Arriving with nothing but the clothes on their backs, as did so many refugees from that conflict, the family lived in a shed in Adelaide’s northern suburb of Blair Athol at the back of her great uncle’s home.

With hard work however the family soon prospered, proving their new home to indeed be “the lucky country.”

Its expected that Australian exporters will save around $2 billion per annum in export taxes under the Australia-India Economic Cooperation and Trade Agreement (ECTA) while consumers and business will likewise benefit from $500 million in projected savings.

The ECTA will also support tourism and workforce demands in regional Australia by making 1000 work and holiday program places available to young Indians, also providing an additional year of stay on high-performing STEM graduates visas upon graduation from an Australian university.

Prime Minister Albanese highlighted the importance of reinforcing Australia’s relationship with its South-Asian neighbour calling the agreement “the next step in elevating our relationship with India, the world’s fastest growing large economy.”

These cuts come just ahead of additional tax decreases on exports to Korea which will come into effect on 1 January 2023.