Economic Co-operation and Trade Agreement (ECTA)

  • IASbaba
  • April 4, 2022
  • 0
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Economic Co-operation and Trade Agreement (ECTA)

Part of: Prelims and GS II – International Relations

Context: India and Australia signed an Economic Co-operation and Trade Agreement (ECTA) recently.

  • Both countries have aimed to double bilateral trade to $50 billion in five years and ease movement of people, goods and services across borders.
  • This is also the first such pact signed by India with a developed country in a decade.

Key takeaways 

  • The deal will facilitate work visas for two to four years for Indian students in Australia on a ‘reciprocal basis’.
  • It will allow Indian chefs and yoga professionals to work there as well.
  • The agreement will facilitate zero duty access on over 96% of Indian exports, including several labour-intensive industries.
  • India will, in turn, offer preferential access to Australia on over 70% of its tariff lines on goods imports, including ‘lines of export interest to Australia which are primarily raw materials and intermediaries such as coal, mineral ores and wines, etc.
  • The agreement with Australia is expected to create 10 lakh additional jobs in the country over the next five years.
  • It will also increase the resilience of supply chains, and also contribute to the stability of the Indo-Pacific region.

News Source: TH

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