Barton Deakin Brief: Free Trade Deal with India

Date: Apr 2022

Barton Deakin Brief: Free Trade Deal with India


Monday 4 April 2022


On Saturday, Prime Minister Scott Morrison and Trade Minister Dan Tehan announced that Australia and India have signed an interim free trade deal. The deal will result in more than 85 per cent of Australian exports to India having their tariffs eliminated. This is valued at more than $12.6 billion per year. 96% of Indian goods imports will also enter Australia duty-free.

Key Details

  • The Australia-India Economic Cooperation and Trade Agreement (AI ECTA) aims to diversify trade opportunities for Australian service providers bound for India
  • Benefits of the AI ECTA include:
    • Sheep meat tariffs of 30 per cent will be eliminated on entry into force, providing a boost for Australian exports that already command nearly 20 per cent of India’s market.
    • Wool will have the current 2.5 per cent tariffs eliminated on entry into force, supporting Australia’s second-largest market for wool products.
    • Tariffs on wine with a minimum import price of US$5 per bottle will be reduced from 150 per cent to 100 per cent on entry into force and subsequently to 50 per cent over 10 years (based on Indian wholesale price index for wine).
    • Tariffs on wine bottles with minimum import price of US$15 will be reduced from 150 per cent to 75 per cent on entry into force and subsequently to 25 per cent over 10 years (based on Indian wholesale price index for wine).
    • Tariffs up to 30 per cent on avocados, onions, broad, kidney and adzuki beans, cherries, shelled pistachios, macadamias, cashews in-shell, blueberries, raspberries, blackberries, currants will be eliminated over seven years.
    • Tariffs on almonds, lentils, oranges, mandarins, pears, apricots and strawberries will be reduced, improving opportunities for Australia’s horticulture industry to supply India’s growing food demand.
    • The resources sector will benefit from the elimination of tariffs on entry into force for coal, alumina, metallic ores, including manganese, copper and nickel; and critical minerals including titanium and zirconium.
    • LNG tariffs will be bound at 0 per cent at entry into force.
    • Tariffs on pharmaceutical products and certain medical devices will be eliminated over five and seven years.
  • Australia will provide new access for young Indians to participate in working holidays in Australia, with places in Australia’s Work and Holiday programme to be set at 1000 per year.
  • Australian services suppliers will be guaranteed to receive the best treatment accorded by India to any future Free Trade Agreement in 31 sectors.
    • This includes: higher education and adult education; business services (tax, medical and dental, architectural and urban planning; research and development; communication, construction and engineering; insurance and banking; hospital; audio-visual; and tourism and travel).

Additional Information

  • To read the Prime Minister’s full press release click here.

For more information, contact David Alexander on +61 457 400 524, Grahame Morris on +61 411 222 680, Cheryl Cartwright on +61 419 996 066, or Samuel Gorman on +61 427 233 108


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