Source: LM
Context: India and Australia have formed a joint working group to explore the possibility of a mutual recognition agreement (MRA) that would facilitate Indian whiskey makers’ access to the Australian market.
- Currently, Australian rules require whiskey to be matured for two years before being labelled as such, which poses a disadvantage for Indian liquor exporters who do not have a similar requirement.
- Indian companies argue that spirits mature more quickly in India’s warmer climate, and the two-year maturation rule restricts their access to a market with a significant Indian population and growth potential.
What is mutual recognition agreement (MRA)?
A Mutual Recognition Agreement (MRA) is a formal agreement between two or more countries or trading partners. It allows them to recognize and accept each other’s standards, regulations, and conformity assessment procedures for specific products or services.
- By doing so, MRAs aim to facilitate trade and market access by reducing redundant testing, certification, and inspection requirements.
The formation of the group comes after Australia got duty-free access for its high-end wines under the Economic Cooperation and Partnership Agreement (ECTA), between India and Australia.
