On 2 April 2022, Australia and India signed an Economic Cooperation and Trade Agreement (AI ECTA) and is expected to become effective at the end of this year.
The full agreement has not been published yet, however, the key points have been shared and focuses on supporting trade through reduction and elimination of tariffs for Australian originating raw materials and produced goods. These goods for imports into India include sheep meat, wool, seafood, wine, metallic ores, coal, alumina, and LNG. Whereas Australia agreed to eliminate tariffs on more than 90% of its tariff lines for Indian originating goods. It is expected that the rules of origin and document requirements would have strict norms.
Poldertrade encourage businesses to evaluate the impact of the changes on their imports and exports and capture potential benefits from this agreement. However, traders should be aware of the qualification requirements of the duty privileges and prepare proper supporting documentation for FTA usage.
If you have any questions regarding this topic, please feel free to contact us.