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This article is regarding the India-Australia Economic Co-Operation and Trade Agreement (ECTA) which was signed on April 2nd 2022 and is part of our ongoing series on the historic deal.

We will focus on the various aspects of Sanitary and Phytosanitary (SPS) measures and their scope of relevance in ECTA.

In simple language, SPS measures are the standards governments put into place to ensure the products coming into their countries are safe for consumption or use. The sections below will outline what SPS measures have been agreed upon between India and Australia to ensure fair, just and navigable trade between the two entities.

The SPS measures are governed by the SPS Agreement formulated by the World Trade Organization (WTO). As an exacting set of standards regarding the safety and biosecurity applicable to humans, plants and animals to prevent them from health risks arising due to contamination in the food and feed, they are a challenging but necessary trade barrier for importers and exporters to overcome. They are more crucial nowadays due to the complex nature of transactions between the economies. Such an agreement allows the governments of member nations to protect their territory while ensuring that such measures do not cause unnecessary trading hurdles for all parties.

This chapter will apply to the SPS measures of the two Parties that will affect trade directly or indirectly and the Parties will affirm their rights and duties concerning each other under the agreement. The term "Parties" or "Party" here will henceforth refer to India and Australia where necessary.

The concept of "equivalence" is about ensuring fair trade despite the differences in the regulatory measures concerning food and health quality standards since, in practice, these standards may be fulfilled using different kinds of measures. For instance, Australia uses heat treatment of milk to produce hard cheese for food safety. However, New Zealand uses a "no-risk" period of import of cucurbits from Australia as an alternative health measure. Therefore, New Zealand can accept this alternative health measure without undermining its national objectives of food and health quality.

ECTA focuses on the efficient and transparent exchange of information between the importer and exporter. Parties have to appoint a contact point and give a list of competent authorities that will deal with matters arising from the SPS agreement.

Each Party must appoint a point of contact for communication between the entities concerned regarding matters under the relevant chapter and provide a list of competent authorities to the other Party responsible for administering SPS measures. Any change in contact points and composition of competent authorities shall be notified.

One of the main objectives of ECTA is to encourage transparency in trade between India and Australia. To achieve the same, prompt exchange of information regarding the SPS measures or any change there must be provided to the other party.

Following transparency obligations, contact points of each Party must inform the other of any changes in the SPS measures, including emergency measures to protect human, animal, and plant life. Such information should also be provided through WTO's Central Registry of Notifications.

Certifications under the SPS measures are necessary to ensure safe import and export under ECTA, especially in agricultural commodities. These certificates need to be aligned with the goods being imported or exported to prevent risks to human, animal and plant life or health.

The Parties shall promote the implementation of paperless electronic SPS certification required in trade to protect human, animal and plant life or health. Such certification must be applied according to provisions of the SPS agreement and the importer will have to accept certificates issued by the authorities representing the exporter.

ECTA is all about transparency, promoting mutual trust, communication and cooperation between India and Australia. One way of enforcing such goals is through regular audits done by both the Parties regarding SPS Measures as per the SPS agreement and other international guidelines.

The Parties shall explore opportunities for further cooperation, collaboration and information exchange, including through their competent authorities on SPS matters of mutual interest aligned with this chapter such as the provision of technical assistance and capacity building, as per the availability of appropriate resources.

The Parties shall also endeavour to coordinate with bilateral, regional or multilateral work programmes to avoid unnecessary duplication and maximise the use of resources.

There are times when Parties involved may require specific clarifications on certain trade concerns. They may request each other for an explanation regarding the same before adopting any other means of dispute settlement.

The SPS Committee established by the WTO focuses on providing a platform for consultations among the Parties. It also serves as a set of guidelines for Parties on different SPS matters. The sub-committee established under this chapter will allow Parties to address various concerns under ECTA with regards to SPS Measures like certifications, equivalence and more.

This trade deal with Australia is an exciting development and is expected to improve Indo-Pacific trade relations. India will gain the benefits of preferential market access in all the varied areas of concern under ECTA and also import raw materials like coal, wine etc on 70% tariff lines. The SPS measures outlined in the agreement will allow both the parties involved to have fair and transparent commercial transactions while keeping safeguarding health and welfare.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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