Indian exports to Australia would be tariff and quota-free within six years, said former Prime Minister of Australian Tony Abbott in New Delhi on March 2 during an interaction organised by the India-Australia Strategic Alliance.
Calling the India-Australia Economic Cooperation and Trade Agreement (ECTA) to be one of the best deals for India, Abbott said, “It’s the best trade deal that India has done with any major economy. About 90 percent of Australia’s exports to India are to be tariff and quota-free. Within six years, 100 percent of India’s exports to Australia will be tariff and quota-free.”
Currently, India’s imports from Australia amount to $17 billion, while its exports to Australia are worth around $10.5 billion, the Ministry of Commerce and Industry said in a statement in January. The ministry expects the total bilateral trade to cross $45-50 billion by 2035.
The ECTA, which came into effect on December 29, 2022, would benefit various labour-intensive Indian sectors currently subjected to a 5 percent import duty by Australia. “The agreement will result in immediate market access at zero duty to 98.3 percent of tariff lines, accounting for 96.4 percent of India’s exports to Australia in value terms. The remaining 1.7 percent lines are to be made zero-duty lines over five years. Overall, Australia is offering duty elimination on 100 percent of its tariff lines,” said the statement.