Australia-India: Historic interim trade agreement reached

On 02 April 2022, Australia and India signed a trade agreement, the Australia-India Economic Cooperation and Trade Agreement, that reportedly will eliminate tariffs on more than 85% of Australian exports to India (valued at more than $12.6 billion a year), rising to almost 91% (valued at $13.4 billion) over 10 years, while eliminating tariffs on 96% of Indian goods entering Australia. Rachel Triggs of Wine Australia noted that the AI ECTA will make India a more viable proposition for small to medium winemakers that have not previously contemplated entering the Indian market. AI ECTA is an interim agreement and both countries continue to work towards a full Comprehensive Economic Cooperation Agreement. Australia’s Prime Minister noted benefits in the agreement for Australian wine producers – Tariffs on wine with a minimum import price of US$5 per bottle will be reduced from 150% to 100% on entry into force and subsequently to 50% over 10 years (based on the Indian wholesale price index for wine). Tariffs on wine bottles with a minimum import price of US$15 will be reduced from 150% to 75% on entry into force and subsequently to 25% over 10 years (based on the Indian wholesale price index for wine).