Australia-India ECTA benefits for the Australian critical minerals and resources sectors
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Australia and India have a natural partnership of shared mutual strategic and economic priorities. The Australia-India Economic Cooperation and Trade Agreement (ECTA) will support further growth and investment in Australia's world-leading critical minerals and resources sectors.
ECTA will and promote growth in Australian minerals exports to India by eliminating and reducing customs duties on key products, improving access to a growing and diversified market for the Australian critical minerals sector.
As a priority strategic partner in the Indo-Pacific, and Australia's fifth largest energy and resources market, India is a major investor in Australian resources with significant (and growing) demand for critical minerals products and other resources. Australia already has development-ready critical minerals projects and is a logical choice for India in securing its supply chains.
Australian firms are also well-placed to meet India's growing demand for mining equipment, technology and services and have a competitive edge in mining consultancy; exploration technologies; mining software; processing components and systems; environmental and mineral quality technologies and safety equipment; and mining education and skills.
ECTA will assist in realising the potential of the Australia-India economic relationship and provide certainty in the supply of high quality and competitively priced critical minerals essential in the production of mobile phones, flat screen monitors, wind turbines, electric cars and solar panels. ECTA will build on existing partnerships and investment streams that already exist between Australia and India in critical minerals and will support India's ambition to take a major role in global advanced manufacturing.
ECTA will help to strengthen our supply chain resilience and trade diversification and address supply chain risks. Having diverse, competitive and resilient clean energy supply chains, underpinned by stable markets, will be critical to meeting future demand for clean energy and for the region’s economic prosperity and security.
To meet its growing energy requirements, India has set ambitious clean energy targets including to meet 50 per cent of its energy requirements through renewable energy and the rapid expansion of electric mobility to 30 per cent of total vehicles by 2030. Australia is in prime position to assist India to achieve its clean energy goals through the supply lithium and other critical minerals.
Australia has reserves of at least 21 of the 49 critical minerals identified by the Indian Government and can play an integral role in strengthening India’s supply chains. Australia has the potential to be one of the top suppliers of cobalt and zircon to India, being in the top 3 for global production of these minerals. Australia also has reserves to supply many other critical minerals to India, including antimony, lithium, rare earth elements and tantalum.
The recently signed Australia-India Critical Minerals Investment Partnership will support further Indian investment in Australian critical minerals projects. Australia has a range of development-ready critical minerals projects that, if quickly scaled up, could support India’s ‘Self-reliant India’ and ‘Make in India’ manufacturing plans. Austrade’s 2021 report Unlocking Australia-India Critical Minerals Partnership Potential outlines a pathway to greater cooperation.
Elimination of tariffs on 29 December 2022 for most critical minerals such as zirconium and titanium.
Australia exported $170 billion of metallic ores globally in 2021.
Tariffs will be eliminated on 29 December 2022 for manganese, copper, cobalt, nickel, aluminium and tin ores.
Australia exported $784 million of titanium dioxide globally in 2021. India is Australia’s first destination of titanium dioxide making 18 per cent (valued at $138 million) of Australia’s exports.
Tariffs will be eliminated on 29 December 2022.
Australia exported $7.6 billion of alumina globally in 2021. Half of India’s imports of alumina come from Australia.
Tariffs on alumina will be eliminated on 29 December 2022.
Australia exported $11.5 billion of non-ferrous metals globally in 2021. The main outcome includes elimination of tariffs on 29 December 2022 for copper alloys and on most nickel products.
Australia exported $63 billion of coal globally in 2021. Around 21.5 per cent (valued at $13.6 billion) of these exports went to India.
Tariffs will be eliminated on 29 December 2022. Phased elimination of bituminous coal over 4 years.
Liquefied Natural Gas
Australia exported $50 billion of LNG globally in 2021. Tariffs on LNG will be locked at 0 per cent on 29 December 2022.
Australia exported $10 billion of crude petroleum globally in 2021. Tariffs on crude petroleum will be eliminated over 4 years.