India-Aus trade pact in force from Dec 29

NEW DELHI: The India-Australia Economic Cooperation and Trade Agreement (ECTA) will come into force from December 29 after both partners completed all formalities, paving the way for two-way duty-free trade, the two countries officially confirmed on Wednesday.

- Rezaul H Laskar and Rajeev Jayaswal

India will get zero duty benefit on 98.3% of its exports to Australia from the Day 1, and on 100% of tariff lines within five years; tariffs on 85% of Australia's exports to India will be eliminated immediately. The deal will benefit India's IT industry, labour intensive sectors, and students with post-study work visas.

"India & Australia consolidate their long-standing partnership.

Economic Cooperation & Trade Agreement, realised under the guidance of leaders of both countries, comes into effect from December 29, 2022. It is the dawn of a whole new era for our businesses & people," commerce minister Piyush Goyal said in a tweet, highlighting key features such as zero duty access on 100% tariff lines and creation of 1 million additional jobs.

Australian Prime Minister Anthony Albanese on Wednesday called the agreement another step towards strategic relationship between two partners. "Australia and India are increasingly working together as strategic and economic partners... The Australia-India Economic Cooperation and Trade Agreement is the next step in elevating our relationship with India, the world's fastest growing large economy," he said.

The deal is expected to take two-way trade to $45-$50 billion in five years from the existing $31 billion, officials have said.

A commerce ministry statement said India and Australia have exchanged written notifications, and as per the agreement it will enter into force 30 days after this exchange. "Accordingly, the Agreement will come into effect from 29 December 2022," it said.