IND-AUS ECTA and its significance for the G20

External shocks inflicted by the pandemic and geopolitical upheavals have disrupted supply chains, resulting in production delays and rising manufacturing costs in the cross-border movement of essential goods and services. This Policy Brief analyses how recent bilateral interim trade agreements such as the India-Australia Economic Cooperation and Trade Agreement (INDAUS ECTA) can be key policy instruments for supply chain resilience in sectors susceptible to disruptions. Examples from this agreement are discussed, which offer key insights for the G20 members to strategise future actions. The Brief proposes specific recommendations pertaining to the role of the G20 in delivering a resilient supply chain framework. Such a framework should be based on robust control, visibility, flexibility, collaboration, technology, and sound governance. A key primary recommendation is to explore the creation of a Rapid Response Forum (RRF) for vulnerable, critical, and essential goods to aid preparedness for unforeseen disruptions.

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