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What is the News?
India and Australia have signed an Economic Cooperation and Trade Agreement (ECTA). The landmark bilateral trade pact is the second trade agreement India has signed this year, after inking a similar deal with the United Arab Emirates.
What are the main provisions of the India-Australia ECTA?
Indian Agriculture: Under this, Australia will get the opportunity to export certain varieties of agricultural produce like potatoes, lentils, and meat products with some caveats. However, bovine meat is not part of the agreement. Australia may also send machineries that are required for food processing.
Wine Sector: India may open up to a wide range of alcoholic and non-alcoholic drinks, including Australian beer. Australian wines costing over $5 may face lower import duties in the Indian market.
Labour Intensive Sectors: Australia will provide ‘preferential access’ to “all the labour-intensive sectors” of export items from India such as gems and jewellery, textiles, leather, footwear, furniture, food, engineering products, medical devices and automobiles. India will also allow Australia to export raw materials under preferential terms, like coal and mineral ores.
Services Sector: Australia has offered wide-ranging commitments in around 135 sub-sectors and Most Favoured Nation in 120 sub-sectors which cover key areas of the Indian services sector like IT, ITES, business services, health, education and audiovisual services.
– Indian chefs and yoga teachers will get specific entry quotas into Australia, while Indian students in Australia will be able to secure work visas for periods ranging from 18 months to four years on a ‘reciprocal’ basis.
Pharmaceutical sector: India and Australia have agreed to enable fast track approval for patented, generic and biosimilar medicines.
Dispute Settlement: India and Australia have agreed to hold consultations — and make “every effort” to find a solution — in case of disputes that may emerge in the course of trade in goods or services. They have also recognised that in case they have to resort to international arbitration, they may opt for an organization (i.e, World Trade Organization) where both are members.
| Read more: Signing of the Economic Cooperation and Trade Agreement (ECTA) between India and Australia |
Source: This post is based on the article “The India-Australia Trade Agreement” published in The Hindu on 5th April 2022.
