Australia-India ECTA - snapshot of benefits
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When it enters into force, the Australia-India Economic Cooperation and Trade Agreement (ECTA) will create new opportunities for Australian goods and services exporters in India’s enormous and growing market of nearly one and a half billion consumers. ECTA will eliminate tariffs on over 90 per cent of Australia’s goods exports to India by value, with tariffs on over 85 per cent of our exports eliminated on 29 December 2022, and phased elimination of tariffs over 2, 4 or 6 years for an additional 5 per cent of our exports.
New market openings for Australian services exports in India
ECTA contains commitments that will benefit services suppliers and professionals considering entering the Indian market and who are already doing business in India.
To improve professional mobility, a new framework to support the streamlining of recognition of professional qualifications, licensing and registration procedures between professional services bodies will be established.
Australian service suppliers will benefit from full or partial access across more than 85 Indian services sectors and subsectors. Australian services suppliers in 31 sectors and subsectors are also guaranteed to receive the best treatment accorded by India to any future free trade agreement partner, including in:
- higher education and adult education
- business services (tax, medical and dental, architectural and urban planning
- research and development
- communication, construction and engineering
- insurance and banking
- hospital, audiovisual and tourism and travel.
Modern commitments will provide for non-discriminatory treatment for Australian service suppliers across a wide range of sectors. There will also be improved transparency and predictability around the domestic regulations that apply in India.
India will provide market access for single-brand retailing and franchising, as well as commitments regarding wholesale distribution services. Australian internet services businesses in India will also have more opportunities to expand their portfolio with foreign equity limit of 74 per cent for commercial presence.
ECTA contains separate Annexes on Financial Services, Professional Services and Telecommunications Services, consistent with the growth opportunities these sectors represent.
Preferential tariffs for Australian goods exports to India
- Sheep Meat – elimination of 30% tariffs on 29 December 2022
- Wool – elimination of tariffs on 29 December 2022
- Seafood – elimination of tariffs on 29 December 2022 for fresh rock lobster and elimination of tariffs over 6 years for other fresh, frozen and processed seafood products, including frozen rock lobster, Atlantic salmon and tuna.
- Infant formula – elimination of tariffs over 6 years.
- Barley, oats and lentils – locked-in duty-free entry for barley and oats and immediate 50% tariff reduction for in- quota exports of lentils.
- Nuts – elimination of tariffs over 6 years on macadamias, cashews in-shell, shelled pistachios and hazelnuts. For almonds, immediate 50% tariff reduction on in-quota exports.
- Fruit and vegetables – elimination of tariffs over 6 years for avocados, onions, cherries and berries. Reduction of tariffs over 6 years for apricots and strawberries. For oranges, mandarins and pears, immediate 50% tariff reduction for in-quota exports.
- Wine – reduction of 150% tariff over 9 years for bottles over import prices of US$5 and US$15 and guaranteed best market access by India in any future FTA.
- Resources – elimination of tariffs on 29 December 2022 for coal, alumina, LNG, metallic ores such as copper, manganese and zirconium, titanium dioxide and certain non-ferrous metals.