Despite the celebratory tone surrounding the India-Australia Economic Cooperation and Trade Agreement (ECTA), criticism is mounting within Australia over labor and ethical concerns tied to imports from India. A parliamentary committee recently examined the agreement and found that it may inadvertently undermine Australia’s high labor and environmental standards.
The core issue centers around products potentially made under exploitative labor conditions, including child labor. While the agreement significantly boosts tariff-free trade between the countries, the report warned that it lacks enforceable provisions ensuring compliance with international labor norms such as those set by the International Labour Organization (ILO).
India is known to have complex labor dynamics, especially in informal sectors such as textiles, agriculture, and mining. The Australian report points out that without strong oversight, consumers in Australia might unknowingly purchase goods that violate their ethical expectations. For example, hand-woven textiles or artisanal goods—key exports under ECTA—may originate from unregulated labor environments.
Environmentalists also raised concerns about lower environmental safeguards in Indian industries, fearing an influx of carbon-intensive goods that conflict with Australia’s climate goals. The report urges future trade agreements to include binding clauses for labor rights, human rights, and environmental compliance to avoid reputational and legal risks.
While the Australian government has yet to make any policy shifts, the findings are likely to affect future rounds of trade talks for the Comprehensive Economic Cooperation Agreement (CECA). Indian officials, meanwhile, defend their progress in labor reforms and argue that broader trade exposure will catalyze further improvements in industry standards.
This scrutiny reflects a broader global trend—where trade deals are no longer assessed purely on economic merits but also on social, ethical, and environmental impact, signaling a shift toward more responsible globalization.
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