India-Australia Economic Cooperation and Trade Agreement
(goods and services)

Note on the Meeting of 18 March 2025

Chairperson: H.E. Mr Salomon Eheth (Cameroon)

1.1.  The 112^th Session of the Committee on Regional Trade Agreements (hereinafter "CRTA" or the "Committee") was convened in Airgram _WTO/AIR/RTA/38/Rev.1 dated 7 March 2025.

1.2.  Under Agenda Item 8.1, the CRTA considered the India-Australia Economic Cooperation and Trade Agreement, goods and services, (hereinafter "the Agreement"). The Chair stated that the Factual Presentation had been prepared by the Secretariat on its own responsibility in full consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for Regional Trade Agreements (document _WT/L/671).

1.3.  The Agreement had entered into force on 29 December 2022. The Parties had notified the Agreement to the WTO on 7 September 2023 under Article XXIV:7(a) of the GATT 1994 and Article V:7(a) of the GATS as an agreement establishing a free trade area consistent with Article XXIV of GATT 1994 and Article V of GATS (documents _WT/REG473/N/1 and _S/C/N/1139). The text of the Agreement and the annexes were available on the Parties' official websites and in the WTO RTA database. The Factual Presentation (document _WT/REG473/1) and the questions and replies (document _WT/REG473/2) had been circulated.

1.4.  The representative of Australia welcomed the opportunity to present some remarks on the Economic Cooperation and Trade Agreement (ECTA). He noted his appreciation for the WTO Secretariat in its work drafting the Factual Presentation, and to each of the WTO Members who had submitted questions. The Agreement represented a significant development in the economic relationship between Australia and India, strengthening trade and investment ties between the nations and supporting deeper integration into the global economy. When ECTA had entered into force on 29 December 2022, it had opened new opportunities for businesses, investors, and consumers in both countries. India was one of Australia's most important economic partners, a dynamic and rapidly growing economy with a population of over 1.4 billion people. ECTA built on their longstanding bilateral trade ties and reflected the Parties' shared commitment to open markets, rules-based trade, and sustainable economic growth.

1.5.  Over 85% of Australia's goods exports to India became tariff-free, with that figure set to rise to 90% by 2026. At the same time, 96% of India's exports to Australia became tariff-free, increasing to 100% by 2026. That represented a major boost for two-way trade, reducing costs for businesses and consumers and fostering a more competitive and dynamic global trading environment. ECTA delivered WTO-plus outcomes on services. Australia and India had made various improvements over their WTO commitments under the GATS. ECTA covered a wide range of services, from finance and insurance to education and professional services.

1.6.  Beyond tariffs, ECTA included provisions strengthening investment certainty, promoting regulatory cooperation, and enhancing mobility for professionals. It established a framework for the mutual recognition of qualifications, licensing, and registration procedures, facilitating the movement of skilled professionals between Australia and India. ECTA supported stronger mobility between Australia and India, including through the provision of 1,000 Work and Holiday visas per year for Indian nationals, and it had extended post-study work rights for Indian STEM (Science, Technology, Engineering and Mathematics) graduates in Australia. ECTA also contained commitments in a wide range of other areas, including trade remedies, rules of origin, dispute settlement, customs procedures, and trade facilitation. Looking ahead, both countries were committed to deepening their partnership, and negotiations were already underway for a Comprehensive Economic Cooperation Agreement (CECA) to build upon the success laid by ECTA. Australia was proud of what ECTA had already achieved and remained committed to working with India to ensure its full and effective implementation. Australia thanked the Government of India for its cooperation in negotiating and implementing the Agreement and looked forward to an open and constructive discussion with Members at the meeting.

1.7.  The representative of India thanked the Secretariat for all their efforts to produce the Factual Presentation and particularly the staff who had drafted it, for all the hard work and patience.

1.8.  The ECTA completed two years of remarkable success since its implementation on the 29 December 2022, driving mutual growth and showcasing the complementarity of both economies. The ECTA had significantly advanced trade ties, creating new opportunities for micro, small and medium enterprises, businesses, and employment in both nations, while reinforcing the foundation of their economic partnership. Entering its third year, the Government of India was dedicated to sustaining that momentum through strengthened collaboration and innovative initiatives to drive mutual prosperity.

1.9.  The Agreement covered almost 90% of Australia's export in value terms, while India got zero‑duty access to 100% of tariff lines on its exports to Australia. Additionally, India had made commitments in 103 service sub-sectors, while Australia had committed to 135 sub-sectors. Notably, a long-pending issue related to double taxation on Information Technology and Information Technology Enabled Services (IT/ITES) had been resolved under the Agreement. Since its signing, bilateral merchandise trade had more than doubled, surging from USD 12.2 billion in 2020/2021 to USD 26 billion in 2022/2023. Total trade, however, had moderated in the year 2023/2024 to USD 24 billion, with India's exports to Australia growing by 14%. The 2024/2025 fiscal year continued to reflect strong momentum. From April 2024 to January 2025, total merchandise bilateral trade had reached USD 20.2 billion.

1.10.  Key sectors like textiles, chemicals, and agriculture had shown substantial growth, while exports on new lines, including gold studded with diamonds and turbojets, highlighted the diversification enabled by the Agreement. Imports of essential raw materials, such as ores, cotton, wood and wood products, had fuelled India's industries, contributing to the win-win nature of that partnership. Sectors such as electronics and engineering had room for growth. Exchange of preferential import data had commenced between both countries, highlighting the effective implementation of the Agreement in 2023. The data revealed utilization rate of almost 85%. Building upon that success, the India-Australia CECA was in progress. CECA built on the foundation laid by the ECTA, advancing the bilateral trade agenda with even greater ambition.

1.11.  India and Australia were strengthening their strategic and economic partnership through initiatives such as the Indo Pacific Economic Forum for Prosperity (IPEF) and Trilateral Supply Chain Resilience Initiative (SCRI), which was expected to strengthen the supply chain resilience in the region. The ECTA had played a transformative role in boosting trade, services, and mobility while fostering deeper economic ties. With CECA negotiations underway, both countries were committed to further strengthening their partnership, ensuring mutual growth, and enhancing regional economic integration. Both Parties were committed to building on the momentum created by the ECTA, driving deeper economic integration, and to achieve the target of trade to reach AUD 100 billion by 2030 between India and Australia. Together, India and Australia were poised to take their economic partnership to new heights, fostering mutual prosperity and contributing to a more resilient and dynamic global economy.

1.12.  India highly appreciated the keen interest of Members in the Factual Presentation, particularly Canada, Chinese Taipei, and Thailand for their questions, which had required the Parties to work together in some details. He thanked the Australian colleagues for their efforts and for working closely with them. India should continue to engage with Members for any further information that Members would like to have. He finally thanked the Australian Ambassador for his opening remarks and the Government of Australia for their engagement and cooperation with India. They looked forward to a good discussion with Members on that agenda item.

1.13.  The representative of European Union thanked India and Australia for the comprehensive presentation of their Agreement, and wished them success in its implementation

1.14.  The representative of Thailand thanked Australia and India for the constructive presentation. Thailand appreciated the Parties for providing answers to their written questions, which had enriched their understanding of the Agreement, and they wished for a successful implementation of the Agreement.

1.15.  The representative of Canada thanked India and Australia for their presentation and as well for the responses to their questions, circulated as _WT/REG473/2. She wished them the greatest of success in the implementation of their Agreement.

1.16.  The representative of Cambodia expressed their appreciation to both Parties for their presentations on the Agreement. They recognised the significant efforts that had gone into the negotiation and implementation of the Agreement, reflecting a strong commitment to economic cooperation and mutual growth. He wished both Parties continual success in the effective implementation of the Agreement, ensuring that it brought lasting benefits to business and people on both sides.

1.17.  The Chair noted the consideration of the goods and services aspects of the India-Australia Economic Cooperation and Trade Agreement had allowed the Committee to clarify a number of questions and concluded oral discussion of the RTA in accordance with paragraph 11 of the Transparency Mechanism. Any delegations wishing to ask follow-up questions were invited to forward submissions in writing to the Secretariat by 25 March 2025 and Parties were asked to submit replies in writing by no later than 8 April 2025. In accordance with paragraph 13 of the Transparency Mechanism all written submissions, as well as minutes of the meeting, would be circulated promptly, in all WTO official languages, and made available in the WTO database on RTAs.

1.18.  The Committee took note of the comments made.

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