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Australia-India Economic Cooperation and Trade Agreement

Australia-India ECTA benefits for Australian goods exporters

The Australia-India Economic Cooperation and Trade Agreement (AI-ECTA) places Australian goods exporters in prime position to capitalise on India’s enormous and growing market.

The AI-ECTA offers access to the large Indian market of nearly one and a half billion consumers.

A key negotiating objective of AI-ECTA has been achieved with the agreement offering improved access for agricultural and industrial products in a market that had largely been closed off due to high tariffs on Australian exports.

AI-ECTA will support goods exporters by eliminating and reducing tariffs and removing red tape that slows trade down.

Australia exported $19.3 billion worth of goods to India in 2021, representing 4.2 per cent of Australia’s total exports.

Key outcomes

  • Immediate elimination of tariffs on 85 per cent of exports worth almost $12.6 billion of Australia’s dutiable exports to India over the period 2018-20. In addition, elimination or reduction of tariffs over 3, 5, 7 or 10 years for an additional 5 per cent.
  • Immediate elimination of tariffs on goods such as sheep meat, wool, fresh rock lobsters, certain metallic ores such as manganese, copper and zirconium, coal, alumina, titanium dioxide, certain critical minerals and certain non-ferrous metals.
  • Tariffs locked in at 0 per cent on entry into force on barley, oats, hides and skins and LNG.
  • Immediate access to duty free quota for cotton and immediate 50% tariff reduction to quotas on lentils, almonds, oranges, mandarins and pears.
  • Elimination of tariff over 3, 5, 7 or 10 years on goods such as infant formula, certain peas and beans, certain nuts such as macadamias, shelled pistachios, cashews and hazelnuts, certain fruit and vegetables such as avocados, onions, cherries and berries, certain oil seeds and oils, certain food preparation such as malt extract, pasta and breakfast cereals, petroleum oils, certain non-ferrous metals, pharmaceutical products and certain medical devices.
  • Reduction of tariffs on wine, apricots and strawberries.

Sheep meat

Australia exported $4.3 billion of sheep meat in 2021. Duties on Australian exports to India are 30 per cent. Key ECTA market access outcomes include:

  • immediate elimination of tariffs on entry into force.

Seafood

Duties on Australian exports to India are 30 per cent. Key ECTA market access outcomes include:

  • immediate elimination of tariffs on fresh rock lobster on entry into force.
  • elimination of tariffs on most other seafood, including Atlantic salmon, tuna and frozen rock lobster over 7 years.

Horticulture

Horticulture contributed $4.2 billion to Australia’s agricultural export income in 2021. High tariffs on key commodities hamper Australia’s market access to India:

  • elimination of tariffs over 7 years on avocados, certain peas and beans, onions, cherries, berries, macadamias, cashews, shelled pistachios and hazelnuts.
  • reduction of tariffs over 7 years for apricots and strawberries.
  • Permanent annual quota of 150,000 tonnes for lentils, of 34,000 tonnes for almonds, of 13,700 tonnes for oranges and mandarins, and of 3,700 tonnes for pears with immediate 50 per cent tariff reduction.

Barley and oats

Australia exported $2.7 billion of barley and $156 million of oats in 2021. Key ECTA market access outcomes include:

  • tariffs bound at 0 per cent on entry into force.

Wool

Australia exported $3.1 billion of wool in 2021. Key ECTA market access outcomes include:

  • immediate elimination of tariffs on entry into force.

Infant formula

Australia exported $415 million of infant formula in 2021. Duties on Australian exports to India are 50 per cent. Key ECTA market access outcomes include:

  • elimination of tariffs over 7 years.

Wine

Total Australian wine exports were valued at $2.1 billion in 2021. Duties on Australian exports to India are 150 per cent. Key CECA market access outcomes include:

  • tariffs reduced from 150 to 50 per cent over 10 years for bottles valued over US$5 and tariffs reduced to 25 per cent over 10 years for bottles valued over US$15.
  • minimum import price will be indexed every 10 years based on Indian wholesale price index for wine.

Hides and skins

Australia exported $648 million of hides and skins in 2021. Key ECTA market access outcomes include:

  • tariffs locked-in at 0 per cent on entry into force for raw hides and skins.
  • immediate elimination of tariff on entry into force for processed hides and skins.

Cotton

Australia exported $1.9 billion of cotton in 2021. Key ECTA market access outcomes include:

  • immediate access to a duty-free quota of 300,000 bales.

Metallic ores

Australia exported $170 billion of metallic ores in 2021. Key ECTA market access outcomes include:

  • immediate elimination of tariffs on entry into force for manganese, copper, nickel, cobalt, aluminium and tin ores.

Coal

Australia exported $63 billion of coal in 2021. 21.5 per cent (valued at $13.6 billion) of these exports went to India. Key outcomes include:

  • immediate elimination of tariffs on entry into force.

Crude petroleum

Australia exported $10 billion of crude petroleum in 2021. Key ECTA market access outcomes include:

  • elimination of tariffs over 5 years.

Liquefied natural gas (LNG)

Australia exported $50 billion of LNG in 2021. Key ECTA market access outcomes include:

  • tariffs bound at 0 per cent on entry into force.

Alumina

Australia exported $7.6 billion of alumina in 2021. Half of Indian imports of alumina comes from Australia. Key ECTA market access outcomes include:

  • immediate elimination of tariffs on entry into force.

Titanium dioxide

Australia exported $784 million of titanium dioxide in 2021. India is Australia’s first destination of titanium dioxide making 18 per cent (valued at $138 million) of Australia’s exports. Key ECTA market access outcomes include:

  • immediate elimination of tariffs on entry into force.

Non-ferrous metals

Australia exported $11.5 billion of non-ferrous metals in 2021. The main outcome includes:

  • elimination of tariffs on entry into force for copper alloys and on most nickel products.

Pharmaceutical products

Australia exported $2.6 billion of pharmaceutical products in 2021. Key ECTA market access outcomes include:

  • elimination of tariffs over 5 years.

Wood and paper products

Australia exported $2.8 billion of wood and paper products in 2021. Key ECTA market access outcomes include:

  • elimination of tariffs of up to 20 per cent on wood and wood products, including sandalwood chips over 7 years
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