India-New Zealand Free Trade Agreement Signed to increase trade and invest.

One of the biggest Moves in Economic Cooperation.

At Bharat Mandapam, India and New Zealand have signed a historic Free Trade Agreement (FTA). This agreement was signed between Piyush Goyal and Todd McClay.

This agreement will enhance economic relations as it will lower trade barriers, allow companies and citizens in both regions to access markets better and will provide long-term prospects of developing business and employment in both nations.

Indian Exports are 100% Duty-Free.

One of the major aspects of the agreement is that all Indian exports would be duty-free to New Zealand. This will render Indian products to be competitive in that market.

Sectors set to benefit:

• Textiles and garments
• Leather and footwear
• Engineering goods
• Processed food products

Previously, Indian goods were relatively costly due to tariffs of up to 10%. Exporters, particularly MSMEs and artisans, will be encouraged to increase production as more people will need their goods with duty-free access and thus, more jobs will be created.

Balanced Protection and Sector Protection.

India has followed a measured approach towards market liberalization:

• Approximately 70 percent of tariff lines are being opened.
• Nearly 30% will see immediate duty removal
• Remaining tariffs will be reduced gradually over time

The sensitive industries like dairy, agriculture and metals are safeguarded. Products such as apples, kiwi, and Manuka honey have got safeguards in the form of tariff rates quotas to avoid sudden importation spurts.

Services and Skilled Work Opportunities.

The agreement provides good returns in the services market where New Zealand has opened 118 service categories that include:

• Information Technology
• Education
• Financial services
• Tourism

India The new visa pathway enables up to 5,000 Indian skilled professionals to work in New Zealand up to three years. Yoga teachers, chefs, educators, health care workers and others are beneficiaries.

Students will also benefit through:

• There is no limit to admissions.
• Permission to work part time.
• Prolonged post-study work experiences.

Gains in Investment and Trade Facilitation.

New Zealand has undertaken to enable USD 20 billion investment in India with an objective of investing in sectors such as:

• Infrastructure
• Renewable energy
• Digital services

The agreement makes it easier to access markets in India with pharmaceuticals and medical devices as it acknowledges international standards