India – Australia Economic Cooperation And Trade ECTA: Key Takeaways

1. INTRODUCTION AND OVERVIEW

On April 2, 2022, India, and Australia signed the India-Australia Economic Cooperation and Trade Agreement (ECTA).¹ The ECTA is an interim arrangement and parties will begin negotiations on a full-fledged free trade agreement in the next 75 days.²

Apart from regular chapters like Trade in Goods and Services, Technical Barriers to Trade, Sanitary and Phytosanitary measures, Temporary Movement of Natural Persons, etc., this time the parties vide certain "side letters" have made broad commitments on wine, organic goods, work, and holiday visa, post-study work visas, etc.

With respect to goods, presently the average customs duty rate for imports to India is 13.8% across goods.³ On the other hand, Australia has maintained a tariff rate of 5%⁴ on a majority of its tariff lines, and many items are subjected to nil rates.⁵ Under the ECTA, Australia has offered a nil rate of duty on all tariff lines with 98% of tariff lines being