Blitz Bureau
NEW DELHI: India and New Zealand are set to sign a long-awaited free trade agreement (FTA) on April 27 to significantly boost bilateral trade, investments and market access across sectors. The agreement will be signed in the presence of Union Commerce Minister Piyush Goyal and his New Zealand counterpart, Todd McClay.
The pact is aimed at doubling bilateral trade to $5 billion over the next five years and is expected to open new avenues for Indian exporters, particularly at a time when global uncertainties, including tensions in West Asia, are impacting trade flows.
It will also facilitate an estimated $20 billion investment from New Zealand into India over the next 15 years across sectors such as manufacturing, infrastructure, services, innovation and job creation.
Under the agreement, Indian companies will gain duty-free access to New Zealand’s markets, while New Zealand will see tariffs eliminated or reduced on about 95 per cent of its exports to India. These include products such as wool, coal, wood, wine, seafood, cherries, avocados and blueberries. However, India has kept sensitive sectors like dairy, onions, sugar, spices, edible oils and rubber outside the scope of tariff concessions to safeguard domestic farmers and industries.
New Zealand will also receive quota-based tariff reductions for key exports such as kiwifruit and apples.
At the same time, it will enjoy duty-free access to items including sheep meat, wool and forestry products, while benefiting from reduced duties on products like Manuka honey, infant formula and certain seafood items.
