The Australia-India Economic Cooperation and Trade Agreement (AI-ECTA)

The Australia-India Economic Cooperation and Trade Agreement (AI-ECTA) has been ratified by both the Australian and Indian governments and entered into force on 29 December 2022. In good news for Australian exporters, there will be two tariff cuts in close succession one on 29 December 2022 and another on 1 January 2023.

As outlined on the Department of Foreign Affairs and Trade (DFAT) website, there are some agricultural products which will see an elimination or reduction of tariffs as soon as the AI-ECTA enters into force including sheep meat and wool. Australian products that will have elimination or reduction of tariffs over 3, 5, 7 or 10 years include certain fruits and vegetables, seafood, infant formula, wine, certain oilseeds and oils, certain prepared foods including pasta and breakfast cereals and pharmaceutical products.

Services exports contribute to Victoria’s export success in India. The AI-ECTA will provide increased certainty for Australian service suppliers already doing business in India by binding existing market access, broadly in line with current settings or commitments India has made in other trade agreements.

The AI-ECTA also includes provisions to deepen the people to people links between Australia and India including providing access for young Indians to participate in working holidays in Australia, allowing Australians who have successfully completed their studies and wish to supplement their training to gain professional experience in India and former Indian students will also be able to live, study and work in Australia temporarily upon completion of their studies.

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