Context

• The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) completes two years, driving mutual growth and showcasing the complementarity of both economies. 

About ECTA

• The ECTA was signed in 2022 to increase trade between the two sides to $45-50 billion over five years, and create over 10 lakh additional job opportunities. 
• Under this agreement, India agreed to give 85% of Australia’s exports zero-duty access to its domestic market. India gets zero-duty access to Australia for its goods over five years. 

What are the main features?

• The ECTA is guided by a Preamble and is divided into multiple sections that will govern what is hoped to be the most expansive bilateral trade since the two countries established diplomatic ties before India attained independence. 
• It has a section on goods exports, and lays out clearly “Rules of Origin” that are aimed at creating anti-dumping measures. There are also sections that are aimed at providing remedies and mechanisms for resolving trade disputes. 
• This is the first trade deal signed by India that has a compulsory review mechanism after 15 years of implementation.

What is the dispute settlement mechanism in place?

• Both parties have agreed to hold consultations — and make every effort to find a solution — in case of disputes that may emerge in the course of trade in goods or services. 
• They have also recognised that in case they have to resort to international arbitration, they may opt for an organisation (i.e, World Trade Organization) where both are members. 
• The dispute resolution may range from 45 days to 15 months.

What are the rules of origin included in the agreement?

• The rules of origin are based on the principle that they should be wholly obtained or produced in the territory of one or both of the parties. 
• This section ensures that waste material will not be exported by either side unless they contribute to the production of any of the items listed in the ECTA.

https://pib.gov.in/PressReleasePage.aspx?PRID=2088669