Economic Cooperation and Trade Agreement (ECTA)
The Agreement encompasses cooperation across areas like Trade in Goods, Rules of Origin, Trade in Services, Technical Barriers to Trade (TBT), Sanitary and Phytosanitary (SPS) measures, Dispute Settlement, Movement of Natural Persons, Telecom, Customs Procedures, Pharmaceutical products, and Cooperation in other Areas.
Background
India and Australia enjoy excellent bilateral relations pluralistic, parliamentary democracies, Commonwealth traditions, expanding economic engagement, long-standing people-to-people ties and increasing high-level interaction.
Australia is the 17th largest trading partner of India and India is Australia’s 9th largest trading partner valued at US$ 27.5 billion in 2021.
India and Australia are partners in the trilateral Supply Chain Resilience Initiative (SCRI) arrangement along with Japan to enhance supply chains in the Indo-Pacific Region.
Benefits
- India will benefit from preferential market access provided by Australia on 100% of its tariff lines. Such as Gems and Jewellery, Textiles, leather, footwear, furniture, food, agricultural products, engineering products, medical devices, and Automobiles.
- India will be offering preferential access to Australia on over 70% of its tariff lines, including lines of export interest to Australia which are primarily raw materials and intermediaries such as coal, mineral ores and wines etc.
- Australia has offered wide-ranging commitments in India’s interests like IT, ITES, Business services, Health, Education, and Audiovisual.
- Some of the keys offered by Australia in the services space include a Quota for chefs and yoga teachers; a Post-study work visa of 2-4 years for Indian students on a reciprocal basis;
- India has offered market access to Australia in ‘business services’, ‘communication services’, ‘construction and related engineering services and so on.
- Both sides have also agreed to a separate Annex on Pharmaceutical products under this agreement, which will enable fast-track approval for patented, generic and biosimilar medicines.
