Amanze Chinonye
India and New Zealand’s free trade agreement (FTA) will take effect on Oct. 20, giving Indian exporters duty-free access to the New Zealand market and deepening economic ties between the two countries.
India’s Minister of Commerce Piyush Goyal announced the implementation date on Monday, Sept. 21, saying the agreement would eliminate tariffs on 100% of India’s exports to New Zealand. The deal was signed in New Delhi in April after negotiations concluded in nine months.
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New Zealand completed its domestic ratification process on Monday, with Trade and Investment Minister Todd McClay exchanging ratification documents with India’s high commissioner in Wellington.
The agreement will also provide New Zealand exporters with greater access to the Indian market. About 57% of New Zealand’s current exports to India will become duty-free when the pact takes effect, rising to 82% when fully implemented, while tariffs on other products will be reduced.
Key New Zealand exports covered by the agreement include sheep meat, wool, forestry products, coal, apples and kiwifruit. India has excluded sensitive sectors, including dairy and several agricultural products, from tariff concessions.
The pact also contains provisions on services, investment and professional mobility. New Zealand has committed to facilitate up to $20 billion in investment in India over 15 years, while the agreement includes arrangements for temporary entry by Indian professionals and work-and-holiday participants.
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Goyal said the two countries were targeting trade in goods and services of about 35,000 crore rupees ($4 billion) over the next four to five years. Bilateral trade has expanded in recent years, although it remains modest relative to the size of the two economies.
New Zealand High Commissioner Patrick John Rata described the agreement as a “huge” development, citing mutual trust and a shared vision for closer ties between the countries.
The agreement comes as India and New Zealand seek to diversify trade and investment links and expand access for businesses in each other’s markets.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
