On 2 April 2022, the Australian and Indian Governments signed the Australia–India Economic Cooperation and Trade Agreement (AI ECTA).
When the AI ECTA enters into force, preferential tariff treatment will be afforded to premium Australian wine imported to India, which currently represents a small portion of Australia’s wine exports.
In accordance with the AI ECTA, tariffs on Australian wine with a cost, insurance and freight (CIF) value of more than US$5 per 750ml bottle will decrease to 100 per cent upon entry into force, with a further phased reduction of 5 per cent per year for 10 years down to 50 per cent. Tariffs on Australian wine with a CIF value of more than US$15 per 750ml bottle will decrease to 75 per cent upon entry into force, with a further phased reduction of 5 per cent per year for 10 years down to 25 per cent.
This agreement will not provide any immediate solutions to our need to replace the China market, but does provide an important opportunity in the medium term.