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Trade deal unlocks access to India

The Australian Government has welcomed the beginning of the Australia-India Economic Cooperation and Trade Agreement (ECTA).

ECTA underscores the Government’s commitment to delivering opportunities to diversify trade that are commercially meaningful for Australian businesses.

Australian businesses now have greater access to the Indian market of 1.4 billion people, and one of the world’s fastest growing major economies. A serious window of opportunity has opened for Australian exporters to move into an export market valued at over $24 billion in 2021, ahead many of our key competitors.

Entry into force this year means Australian exporters will benefit from two tariff cuts in quick succession, the first taking place in December, 2022, and the second, on 1 January 2023.

Tariffs have been eliminated on over 85 per cent of Australian exports to India and locked them in at zero. This includes key exports such as wool, lamb, barley, oats, fresh rock lobsters, cosmetics and many metallic ores, critical minerals, non-ferrous metals and titanium dioxide.

Tariffs on a further 5 per cent of exports, including macadamia nuts, avocados, berries, seafood, pharmaceuticals, cochlear implants, vitamins, infant formula, breakfast cereals, pasta, sandalwood chips, pumps and fillers, excavating machinery parts and lifting machinery for mines, are lower today and will be phased down to zero within 6 years.

In addition, Australian producers of premium wine, lentils, almonds, oranges and strawberries are now receiving significant reductions to high Indian tariffs.

Australian manufacturers, processors and consumers will also benefit from the elimination of tariffs on imports of Indian goods and inputs.

Australian services suppliers are also gaining full or partial market access across 85 sectors and subsectors including distribution, financial and telecommunications services.

Importantly, the trade agreement will support tourism and workforce needs in regional Australia by making 1,000 Work and Holiday Program places available to young Indian travellers.

The agreement will complement the Australia-India Comprehensive Strategic Partnership, the Government’s implementation of the Update to the India Economic Strategy and our joint efforts in the Quad and Indo Pacific Economic Framework, to tackle the biggest challenges of our time, including climate change and the security of our region.

India is Australia’s sixth-largest trading partner and fourth-largest export market.

“Australia and India are natural trading partners – this agreement will unlock the enormous potential in our trading relationship,” said Minister for Trade and Tourism, Senator the Hon Don Farrell.

“ECTA’s entry into force today opens up the world’s largest democracy, with nearly one and a half billion people, to Australian exporters.

“Australian businesses can look to DFAT’s Free Trade Agreement Portal and Guide to using ECTA to export and import goods to seize these new opportunities.”

 

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