The Free Trade Agreement between India and New Zealand will come into effect from 12:01 am on October 20. Under this, all Indian goods will get 100% duty-free entry in New Zealand. Under this agreement, New Zealand will invest 20 billion dollars i.e. about Rs 1.90 lakh crore in India in the next 15 years. Announcing this trade agreement, Union Minister Piyush Goyal said that its objective is to increase the trade between the two countries from the current 2.4 billion dollars to about 7 billion New Zealand dollars i.e. about ₹ 38,000 crore by the year 2030. 100% duty-free access to Indian exporters New Zealand is providing the facility of zero import duty on 100% of India’s tariff lines i.e. all product categories. This is the first FTA in the history of India, which provides complete duty-free access to all products from the very first day of its implementation. This step will eliminate the loss suffered by Indian exporters, which they had to bear due to tariffs of up to 10% imposed before FTA. These major sectors will get direct benefit of FTA. Sectors like dairy are not included in FTA. Keeping in mind the domestic interests, India has not included its sensitive products in FTA. Benefits in service sector, visa rules and farming: New Zealand has opened its 118 service sectors/sub-sectors for Indian service providers. These include IT, professional services, telecommunication, construction, education, financial services and tourism. This will make movement easier for Indian professionals and business visitors… Agricultural Productivity Partnership has been formed to increase agricultural productivity. Under this, productivity and quality will be improved in India by making a dedicated action plan for kiwi, apple and honey. What are the benefits of FTA to New Zealand? India is giving concession on 70% of its tariff lines, which covers about 95% of the current trade value of both the countries. The remaining 29.97% tariff lines have been kept in the exclusion list. India has set duty-based quota (TRQ), minimum import price (MIP) and safeguard measures for apple, kiwi, manuka honey and albumin. This will ensure phase wise imports along with protecting the interests of domestic farmers. Simple rules will reduce costs. What is Tariff Rate Quota (TRQ)? Under this, low or zero duty is imposed on the import of a particular good up to a certain quantity, while normal or high tax is imposed on imports beyond that amount. This protects the domestic market and also fulfills the needs.
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India-New Zealand Free Trade Agreement comes into effect from October 20: Now New Zealand’s goods like kiwifruit and clothes will be available cheap in the country, duty-free entry for all Indian goods.
