Exports from India to Australia have experienced a significant upturn, driven by the duty concessions granted through the India-Australia Economic Cooperation Agreement (ECTA), according to government officials. Since the agreement’s implementation on December 29, 2022, items such as engineering goods, electronics, apparel, and pharmaceuticals have witnessed a surge in exports to Australia. Furthermore, agricultural exports from Australia, including sheep meat, seafood, broad beans, citrus, and almonds, to India have grown by 50% since the inception of the trade agreement.
The ECTA has resulted in a notable increase in Australian industrial exports to India, with pharmaceuticals, wood and paper, and cochlear implants leading the charge. Australian businesses have claimed lower tariffs on exports worth $15.2 billion to India from January to September. As a result of the agreement, India benefits from preferential market access provided by Australia on 100% of its tariff lines.
The agreement also entailed duty cuts on various products, reducing tariffs on 3,185 tariff lines to zero, effective from December 2022. However, certain products will witness duty cuts phased in over five years. In return, India has offered preferential access to Australia on over 70% of its tariff lines, primarily consisting of raw materials and intermediaries like coal, mineral ores, and wines.
Despite an overall decline in exports to Australia, driven by external trade factors, Australian businesses and households have saved over $145 million in import duties on goods such as clothing, household linen, automotive, and electrical parts. Thus, the agreement has proven beneficial for various Australian exporters, manufacturers, and farmers.
Don Farrell, the Australian Minister for Trade and Tourism, expressed optimism about the agreement’s success and the need to further enhance trade ties between the two nations.
