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Ind- Aus ECTA

Ind- Aus ECTA:

India signed a historic trade agreement with Australia, the India-Australia Economic Cooperation and Trade Agreement (Ind- Aus ECTA).

  • In February 2022, India and Australia announced that they were going to sign such an agreement.
  • The negotiations for India-Australia ECTA were formally re-launched in September 2021 and concluded on a fast-track basis by the end of March 2022.
  • Economic Cooperation and Trade Agreement is the first Free Trade Agreement (FTA) that India has signed with a major developed country in over a decade.
  • In February, India signed an FTA with the UAE and is currently working on FTAs with Israel, Canada, UK and the European Union.
  • The Agreement encompasses cooperation across the entire gamut of bilateral economic and commercial relations between the two friendly countries, and covers areas like:
    • Trade in Goods, Rules of Origin.
    • Trade in Services.
    • Technical Barriers to Trade (TBT).
    • Sanitary and Phytosanitary (SPS) measures.
    • Dispute Settlement, Movement of Natural Persons.
    • Telecom, Customs Procedures.
    • Pharmaceutical products, and Cooperation in other Areas.
  • ECTA provides for an institutional mechanism to encourage and improve trade between the two countries.
  • The ECTA between India and Australia covers almost all the tariff lines dealt in by India and Australia respectively.
  • India will benefit from preferential market access provided by Australia on 100% of its tariff lines.
  • This includes all the labour-intensive sectors of export interest to India such as Gems and Jewellery, Textiles, leather, footwear, furniture etc.
  • On the other hand, India will be offering preferential access to Australia on over 70% of its tariff lines, including lines of export interest to Australia which are primarily raw materials and intermediaries such as coal, mineral ores and wines etc.
  • Under the agreement, Indian graduates from STEM (Science, Technology, Engineering and Mathematics) will be granted extended post-study work visas.
  • Australia will also set up a programme to grant visas to young Indians looking to pursue working holidays in Australia.