Key Benefits of ECTA
- Tariff Elimination: Over 85% of Australian goods exports to India are now tariff-free, with this figure set to rise to 90% by 1 January 2026. Similarly, 96% of imports from India are now tariff-free, increasing to 100% by 1 January 2026.
- Trade Facilitation: New rules under ECTA will provide Australian traders with greater certainty. This includes advance rulings on tariff treatment and streamlined documentation requirements for faster processing of goods.
Trade Trends
- Australia's Exports to India: Australia's exports to India are primarily raw materials and intermediate goods, with coal being the dominant export. In 2021, Australia exported $31.5 billion worth of goods to India, with coal briquettes accounting for $27 billion of this total.
- India's Exports to Australia: India's exports to Australia are more diversified and include finished products such as refined petroleum, packaged medicaments, and diamonds. In 2021, India exported $7.66 billion worth of goods to Australia.
Sector-Specific Benefits
Agriculture: High tariffs on agricultural products have been reduced, benefitting Australian farmers. For instance, tariffs on sheep meat and fresh rock lobster were eliminated immediately upon the agreement's entry into force.