The India-New Zealand free trade agreement (FTA) will come into force on Tuesday, becoming the seventh FTA to be operationalised in the past five years and eliminating tariffs on 100% of Indian exports, commerce minister Piyush Goyal said on Monday.
The agreement is also expected to boost India’s services exports by opening opportunities for skilled Indian professionals in sectors such as information technology, engineering, healthcare, education and construction. India is setting up dedicated investment facilitation desks to assist investors from New Zealand.
It also provides for cooperation involving AYUSH systems of medicine, yoga instructors, chefs and music teachers, the official said. The deal is mutually beneficial, the official said, adding that New Zealand investors would gain access to India’s manufacturing ecosystem and large market.
Under the pact, New Zealand has also committed to investing $20 billion in India over the next 15 years.
All Indian merchandise exports to New Zealand will now be duty-free, Goyal said while addressing Indian exporters.
Market Access and Safeguards for Key Sectors
New Zealand exporters will benefit from preferential quota access to the Indian market for products including apples, kiwifruit and albumins. New Zealand trade minister Todd McClay, who joined the meeting virtually, said 57% of New Zealand exports to India will be tariff-free from day one. More than 95% of New Zealand’s forestry and wood exports will also benefit from improved access, alongside exports such as sheep meat, wool and coal.
The FTA provides a comprehensive framework for bilateral economic cooperation, covering market access, agricultural productivity, investment, talent mobility, sports, tourism and people-to-people ties, a commerce ministry official said. McClay described the FTA as a “high-quality agreement” and said the deal would give businesses in both countries confidence amid global economic uncertainty.
