The Economic Cooperation and Trade Agreement (ECTA) between Australia and India was signed on 2 April 2022. The ECTA is an interim trade deal that should pave the way for a wider and deeper comprehensive economic cooperation agreement between the two countries. It was enabled by India’s ‘China-exclusive’ trade agreement approach and avoiding key areas of political disagreement between the two countries.
By eliminating tariffs on more than 85 per cent of Australian exports to India and more than 90 per cent of Indian exports to Australia, the ECTA expects to considerably enlarge the current bilateral trade of US$24.3 billion. India is expected to become Australia’s third largest export market by 2035 as well as one of the foremost locations for Australian outbound investment.
Source: eastasiaforum.org
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