India, NZ to ink free trade agreement today; aim to double bilateral trade

New Delhi, April 26: More than four months after announcing the conclusion of negotiations on December 22 last year, India and New Zealand are set to sign their free trade agreement on April 27, aimed at doubling bilateral trade between the two countries.
The pact will give India companies duty-free access to the island nation’s markets, and bring in USD 20 billion of investment over the next 15 years.
The pact will be signed in the presence of Commerce and Industry Minister Piyush Goyal and Todd McClay, New Zealand’s Minister for Trade and Investment, here at Bharat Mandapam, according to the commerce ministry.
The deal will also give India more temporary employment visas, easier access for pharmaceuticals and medical devices.
While the agreement will eliminate or reduce tariffs on 95 per cent of New Zealand’s exports of items ranging from wool, coal, wood, wine, to avocados and blueberries to India, New Delhi made no concessions on allowing imports of dairy, onions, sugar, spices, edible oils and rubber to protect farmers and domestic industry.
New Zealand, which committed to investing USD 20 billion in India over the next 15 years in manufacturing, infrastructure, services, innovation and job creation, will also get quota-based tariff cuts for kiwifruit and apple exports.
The deal is aimed at doubling bilateral trade to USD 5 billion in five years. The pact will help Indian exporters, reeling under the impact of global uncertainties, including the West Asia crisis, diversify shipments in the Oceania region. India has already implemented a trade pact with Australia.
Under the pact, 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.
Besides it will also get duty concessions on a number of items such as kiwifruit, 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 that 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. (PTI)