MPP GROUP PROJECT

IND-AUS
FTA
Group- 13
FREE TRADE AGREEMENT
A FREE TRADE AGREEMENT INCLUDES
TREATY BETWEEN TWO NATIONS TO
FACILITATE TRADE AND ELIMINATE
BARRIERS
AIMS AT REDUCING BARRIERS TO
IMPORTS AND EXPORTS
DO NOT GIVE UP COMPLETE CONTROL
BUT GIVE SOME AUTHORITY TO
MAKE THE TRADE SIMPLE
EFFECTS OF TARIFF
ABSENCE OF TARIFF
DS AND DD ARE DOMESTIC SUPPLY AND
DOMESTIC DEMAND, RESPECTIVELY.
THEREFORE, TO BRIDGE THIS GAP, THE
COUNTRY MUST IMPORT QW-QD WORTH OF
GOODS.

PRESENCE OF TARIFF

PRICE INCREASE CAUSES DOMESTIC

PRODUCTION TO INCREASE. AS A RESULT, QD
MOVES RIGHT WHILE QW SHIFTS LEFT. THE
OVERALL EFFECT IS A REDUCTION IN
IMPORTS, INCREASED DOMESTIC
PRODUCTION AND HIGHER CONSUMER
PRICES.
SIGNIFICANCE OF FREE TRADE
AGREEMENT
ENCOURAGE BUSINESS IN MEMBER
COUNTRIES
INCREASE THE INTERNATIONAL
TRADE
LOWERS THE DOMESTIC PRICES
ACCESS TO NEW EMERGING
TECHNOLOGIES
ENCOURAGE FDIS INTO THE COUNTRY
HELP IN ELIMINATING MONOPOLIES
ENHANCE COMPETITIVENESS
SUPPLY CHAIN DIVERSIFICATION
COSTS AND BENEFITS OF TARIFFS FOR
IMPORTING COUNTRY
CONSUMER LOSS = A+B+C+D
PRODUCER GAIN = A
GOVERNMENT REVENUE GAIN = E+C

THE NET EFFECT OF A TARIFF ON WELFARE IS

CONSUMER LOSS – PRODUCER GAIN –
GOVERNMENT REVENUE = B+D-E
 INDIA – AUSTRALIA
ECONOMIC
COOPERATION AND
TRADE AGREEMENT
(ECTA)
 1 THE FTA WILL COME IN

KEY EFFECT FROM DECEMBER 29

DOUBLING THE COMMERCE
POINTS TO $50 BILLION IN 5 YEARS

3 THE FTA WILL INCLUDE 2 IT IS THE FIRST TA THAT

SECTORS SUCH AS INDIA HAS SINGED WITH A

EDUCATION, MINING, DEVELOPED NATION IN 10

ENERGY, SERVICES, SPORTS YEARS

AND MANY MORE.

 BENEFITS
1 2 3
Goods Services Mobility
Duty free Currently India is 3rd largest To encourage outward
movements of exporter of services for mobility visa paths and
goods from both Australia. FTA agrees to application procedures
sides further improvements in have been made easier
services

4 5
Professional Services Tourism and Education
professional services organizations Agreement has been made to no
to establish mutual recognition limitations on market access via cross-
agreements for qualifications, border supply and commercial presence
licensing, and registration for tourism and education
procedures in professional services
COMPLIMENTARY
GOODS AND 1 Mining
SERVICES 2 Energy Resources

3 Services

4 Education and Research

5 Manufacturing

6 Agricultural Products