World
New Zealand Parliament Approves Free Trade Agreement with India
By HT News Desk
New Zealand's Parliament has passed a Free Trade Agreement (FTA) with India, a move Prime Minister Christopher Luxon described as a "landmark" deal. The agreement, which received a 93-29 vote in favor from lawmakers, is expected to create more jobs and increase incomes for New Zealanders. Luxon stated that the deal will open the Indian market to 1.4 billion consumers for New Zealand products.
Trade Minister Todd McClay highlighted that the FTA provides access for Kiwi exporters to one of the world's largest and fastest-growing economies. India's Commerce Secretary Rajesh Agrawal indicated on Tuesday that India aims to implement the agreement as soon as possible, potentially by October.
Under the terms of the agreement, New Zealand will grant duty-free access to all Indian exports, encompassing 100 percent of tariff lines. This is anticipated to boost India's labor-intensive sectors, including textiles, apparel, leather, footwear, gems, jewelry, engineering goods, and processed foods. Additionally, New Zealand has committed to investing USD 20 billion in India over the next 15 years to strengthen economic ties and investment cooperation.
For New Zealand exports entering India, market access has been granted across 70.03 percent of tariff lines, covering approximately 95 percent of bilateral trade. India has excluded 29.97 percent of tariff lines, including sensitive sectors such as dairy, certain agricultural commodities, sugar, and specific metals. Duties on 30 percent of tariff lines, including wood, wool, sheep meat, and raw hides, will be eliminated immediately. Another 35.60 percent of tariffs will be phased out over periods of three, five, seven, or ten years. The agreement also includes tariff reductions on products like wine, pharmaceutical drugs, polymers, and certain aluminum, iron, and steel items. Tariff-rate quotas will apply to a limited number of products, including Mānuka honey, apples, kiwifruit, and albumins.
Both countries have also agreed to enhance agricultural cooperation, focusing on improving productivity in sectors such as kiwifruit, apples, and honey. This collaboration will cover areas including planting material, research, technical assistance, orchard management, post-harvest practices, supply-chain development, and food safety. The FTA was signed by India and New Zealand on April 27.