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.