News: The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has reached its two-year milestone. It highlights significant achievement in strengthening bilateral trade ties and promoting mutual growth.
About Ind-Aus ECTA
- It was signed on April 2, 2022 and came into force in December 2022.
- Aim– To provide an institutional mechanism to encourage and improve trade between India-Australia.
- Key Features of the ECTA:
- Tariff Reduction: Australia has removed tariffs on 96% of Indian goods, while India has extended concessions on coal, wine, and agricultural products to Australia.
- Market Access: The agreement ensures mutual market access in key sectors such as pharmaceuticals, education, healthcare, and information technology.
- Enhanced Professional Mobility: Indian professionals in IT and healthcare benefit from improved opportunities to access the Australian market.
- Rule of Origin: The agreement includes a rule of origin clause to prevent any unintended benefits to third-party nations.
Recent Trends: - Trade Growth: Bilateral merchandise trade surged from USD 12.2 billion in 2020-21 to USD 26 billion in 2022-23.
- Utilization Rates: In 2023, export utilization stood at 79%, while import utilization reached 84%.
- Moderation: Total trade amounted to USD 24 billion in 2023-24, with India’s exports recording a 14% growth.
Note– The ECTA serves as a cornerstone for the forthcoming Comprehensive Economic Cooperation Agreement (CECA). The Comprehensive Economic Cooperation Agreement is an extension of the ETCA, for which negotiations are undergoing between India and Australia.
