India, New Zealand ink Free Trade Agreement: Know what’s on cards for India
PTC News Desk: India and New Zealand on Monday signed a Free Trade Agreement with an objective of boosting two-way commerce and investments.
The pact was signed by Commerce and Industry Minister Piyush Goyal and visiting New Zealand's Trade and Investment Minister Todd McClay.
The FTA allows duty-free access for 100 per cent of India's export to New Zealand spanning across tariff lines or produce categories and is expected to significantly boost MSMEs and employment. The agreement also expands oppertunities across other sectors including textiles, apparel, leather, footwear, gems and jewellery, engineering goods, and processed foods which are largely labour-intensive.
Earlier, New Zealand maintained peak tariffs of up to 10 per cent on key Indian exports, including ceramics, carpets, automobiles, and auto components.
Now with zero-duty market access into the New Zealand market as its other trade partners, Indian products will be fully competitive.
India has opened about 70% of its tariff lines to New Zealand, covering nearly 95% of current imports. This will help New Zealand exporters in sectors like wool, wine, wood, coal, and fruits such as avocados and blueberries.
The agreement also includes cooperation in agriculture, with a special agri-tech plan to support Indian farmers in areas like kiwi, apple, and honey production.
At the same time, India has kept around 30% of its tariff lines out of the deal to safeguard sensitive sectors. These include dairy products, edible oils, sugar, vegetables like onions and pulses, as well as industries like gems, jewellery, and metals.
Sen said this balance is important, adding that India has managed to protect its key sectors like dairy, edible oils, and major agricultural products while still opening up trade.
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