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

• Faster customs clearance
• Paperless documentation
• Transparent procedures

The steps will contribute to cost reduction and facilitate doing business.

Increase Agriculture, MSMEs and Cultural Exchange.

The FTA also encourages non trade cooperation:
Research and improved agricultural practices.
Increased opportunities of MSMEs and startups by global value chains.

Expansion in organic trade based on mutual recognition standards.

• It also incorporates the cultural exchange and traditional knowledge such as the AYUSH systems and creative industries which create new channels of soft power and niche exports such as tea, rice and spices.
• A Good Foundation to Future Growth.
• As bilateral trade is already increasing, this agreement will be able to boost trade volumes, exports, and jobs greatly. It also intensifies the Indian involvement with the developed economies, and diversifies its international trading relationships.
• States like Gujarat, Maharashtra, Tamil Nadu and Punjab will get opportunities to benefit by increased exports. All in all, the FTA provides a good ground on top of which the economic growth and further international cooperation can be sustained.

Exam-Focused Points

• A Free Trade Agreement was signed between India and New Zealand at Bharat Mandapam, New Delhi.
• Offers full Indian duty-free to export into New Zealand.
• India liberalizes tariff lines by 70 percent although sensitive areas are safeguarded.
• Has protection measures such as tariff rate quotas on certain farm imports.
• Indian professionals are allowed to work in 118 service sectors in New Zealand.
• Gives five thousand skilled laborers the freedom to labor up to three years.
• Enables 20 billion investment into India.
• Enhances MSMEs, agricultural cooperation and cultural exchange.