After the agreement was signed and implemented in 2022, bilateral trade reached USD 24 billion in 2023-24, with India’s exports to Australia growing by 14% compared to 2022-23.
- The IA-ECTA is a strategic economic agreement that aims to increase resilience against geopolitical uncertainties.
Key Features of India-Australia ECTA
- Tariff Elimination: ECTA eliminates tariffs on 85% of Australian goods shipped to India and 96% of Indian goods sent to Australia.
- Rules of Origin: Strict rules of origin to prevent third-party goods from getting preferential treatment under ECTA.
- Trade in Services: 135 sub-sectors opened by Australia, 103 sub-sectors by India.
- Trade Remedies: Safeguard mechanism to protect against sudden import surges.
- Dispute Settlement: Consultations & negotiations as the first step. If unresolved, a three-member arbitral panel is formed.
- Each country appoints one member, and a mutually agreed Chair oversees the panel.
Issues in India-Australia Trade Relations
- Trade and Market Access: Prolonged Comprehensive Economic Cooperation Agreement (CECA) negotiations, Non-Trade Barriers such as sanitary & phytosanitary standards and technical barriers.
- Pharmaceutical pricing control in Australia, particularly on generics, hampers market access for Indian products.
India-Australia ECTA Significance
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