India, New Zealand FTA to give duty-free access to a range of goods
Both countries to implement the agreement in 7-8 months: Goyal
image for illustrative purpose
New Delhi: India and New Zealand on Monday announced the conclusion of talks for a free trade agreement that will give duty-free access to a range of domestic goods, particularly from labour-intensive sectors, and includes an FDI commitment of $ 20 billion over 15 years.
The agreement is expected to help double bilateral trade in goods and services to $ 5 billion in five years.
On the other hand, New Zealand will get duty-free access to goods such as sheep meat, wool, coal and over 95 per cent of forestry and wood articles. Under the pact, Wellington will get duty concessions on a number of other items such as kiwi fruit, wine, some seafood, cherries, avocados, persimmons, bulk infant formula, Manuka honey and milk albumins.
To protect the interests of domestic farmers and MSMEs, India will not give any duty concessions in the politically sensitive dairy sector, like milk, cream, whey, yoghurt, and cheese.
The other products which will not be covered under the pact include vegetable products (onions, chana, peas, corn, almonds), sugar, artificial honey, animal, vegetable or microbial fats and oils, arms and ammunition, gems and jewellery, copper and its products, and aluminium and articles.
As regards the services sector, New Zealand will give a temporary employment entry visa pathway for Indian professionals in skilled occupations with a quota of 5,000 visas annually and a stay of up to three years.
This pathway covers Indian professions such as AYUSH practitioners, yoga instructors, Indian chefs, and music teachers, as well as high-demand sectors including IT, engineering, healthcare, education, and construction, strengthening workforce mobility and services trade.
The agreement is likely to be signed and implemented in about 7-8 months. The pact would help Indian exporters, reeling under the impact of 50 per cent tariffs imposed by the Trump administration on Indian goods, to diversify shipments in the Oceania region. India has already implemented a trade pact with Australia.
Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon on Monday announced the firming up of the pact. The two prime ministers held a phone conversation, following which the announcement on the FTA was made.
