Australian exporters have saved approximately $2 billion in tariffs by the end of December 2024 due to the tariff concessions introduced under the Economic Cooperation and Trade Agreement (ECTA) between Australia and India, according to an official statement.
The ECTA, which came into effect on December 29, 2022, has eliminated tariffs on over 85% of Australian goods exported to India by value, a figure that is expected to increase to 90% by 2026. Additionally, 96% of Indian exports to Australia are currently tariff-free, with full tariff elimination expected by 2026.
The Australian government highlighted the agreement’s impact on trade and local businesses, stating that tariff savings are reducing costs and supporting job creation. As part of a broader economic engagement strategy, Australia has launched “A New Road Map for Australia’s Economic Engagement with India”, which outlines future trade priorities.
The agreement has facilitated a significant increase in trade, with Australian exports to India—excluding coal—growing by 35% in the first year of implementation. The trade deal has also enabled the expansion of Australian agricultural exports to India, including products such as cotton, nuts, and various fruits and vegetables.
Beyond agriculture, nearly 200 Australian products were either exported to India for the first time or reintroduced after a long absence. These include fresh salmon, avocados, rock lobsters, pinewood, pharmaceuticals, chemicals, electric motors, generators, astroturf, and fiberglass.
Similarly, Indian exporters have benefited from improved access to the Australian market. In 2023, imports of Indian agricultural products into Australia increased by 15%. Growth has also been observed in industrial goods, including clothing and apparel, pharmaceuticals, telephone sets, cosmetics, perfumes, machinery, and auto parts.
According to the Australian government, the full elimination of tariffs on Indian exports by 2026 is expected to provide cost advantages for Australian manufacturers by reducing input costs, ultimately benefiting consumers. The trade agreement continues to shape economic ties between the two countries, with sectors such as clean energy, education, agribusiness, and tourism identified as key areas for further collaboration. Negotiations are ongoing for a broader free trade agreement aimed at expanding market opportunities for businesses in both nations.
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