Strengthening Bilateral Trade
The Australia-India Economic Cooperation and Trade Agreement
The Australia-India Economic Cooperation and Trade Agreement (AI ECTA) represents a strategic collaboration of two economic powerhouses – Australia and India. This agreement promotes deeper economic integration, fosters bilateral trade growth, and simplifies cross-border business operations, focusing on reducing trade barriers, eliminating tariffs, and enhancing market access.
The stage is set for unprecedented trade collaborations between these two dynamic nations.
KEY TAKEAWAYS
Zero Duties & Tariff Reduction
The ECTA offers:
- Zero-duty access to 96% of India’s exports to the Australian market
- Zero-duty access to 85% of Australia’s exports to the Indian market
- Australia is allowing duty-free import of all Indian products.
Key gainers will be India's labour-intensive exports. Duty on these will decrease from the current 5% to zero. These goods include textiles, footwear, apparel, machinery, sports goods, furniture, jewellery, railway wagons, and medicines.
Better Market Access
- Australia is providing preferential market access across 100% of its tariff lines will offer benefits to India. This includes all the labour-intensive sectors that are of interest to India such as Gems and Jewellery, leather, Textiles, footwear etc.
- India offers preferential access to Australia on over 70% of its tariff lines. This includes lines primarily raw materials and intermediaries such as coal, mineral ores, wines etc. which are of export interest to Australia.
Access to Simplified Trade
- Streamlining customs processes and reducing bureaucratic hurdles is the critical concern of the AUS-IND ECTA.
- With enhanced transparency, this agreement extends to smoother trade operations, expediting the movement of goods and services between Australia and India.
- This efficiency saves time and also develops an environment conducive to long-term trade partnerships.
Strategic Business Collaborations
- The ECTA goes beyond economic gains, to a deeper level of strategic collaboration between Australia and India.
- This partnership not only strengthens trade but also political and diplomatic ties and nurtures mutual trust.
Australia and India are working together to understand global challenges, and the ECTA acts as a commitment to mutual progress, regional stability, and shared prosperity. The agreement has strengthened the bond between the two nations is ready to explore multiple trade opportunities and looks forward to a flourishing bilateral relationship.
