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by IANS |
New Delhi, Dec 22 (IANS) New Zealand and?India have?concluded?a?Free Trade?Agreement (FTA),?offering?New Zealanders?unprecedented access to 1.4 billion?Indian?consumers, Trade and Investment Minister Todd McClay announced on Monday.
This historic FTA eliminates and reduces tariffs on 95 per cent of New Zealand’s exports -- among the highest of any Indian FTA -- with almost 57 per cent being duty-free from day one, increasing to 82 per cent when fully implemented, with the remaining 13 per cent subject to sharp tariff cuts.
It?puts?New Zealand exporters on?an?equal or better footing?to our?competitors?across a range of sectors?and opens?the door to India’s rapidly expanding middle class, according to an official statement.
Negotiations began on March 21 and concluded after nine months of intensive effort.
“This once-in-a-generation?Agreement creates opportunities New Zealand exporters have never had in India.?This deal is in New Zealand’s best interest and will deliver thousands of jobs and billions in?additional?exports,”?McClay?said in a statement.
“The Indian economy is forecast to grow to?NZ$12 trillion by 2030.?The India-NZ?Free?Trade Agreement?unleashes?huge potential?for our world-class?exporters to?the world’s largest country?and will?significantly?accelerate progress?towards?New Zealand’s?ambitious?goal?of doubling the value of exports?over?10 years.”
Key outcomes?for New Zealand?include tariff elimination or reduction on 95 per cent of exports; duty-free access?on?almost 57 per cent?of New Zealand’s exports from day one,?increasing?to 82?per cent when fully implemented, with the remaining 13 per cent being subject to sharp tariff cuts; immediate tariff elimination on sheep meat, wool, coal and over 95 per cent of forestry?and wood?exports; duty-free access?on most seafood exports, including mussels and salmon, over seven years and duty-free access?on most iron,?steel?and?scrap aluminium, over 10 years?or less, among others.
“In a world-first, New Zealand will have duty-free access for a large kiwifruit quota - nearly four times our current exports - with a 50 per cent tariff applying outside quota. For the first time in an FTA, India has agreed preferential market access for apples and manuka honey," McClay said.
The FTA has broad services coverage and builds significantly on India’s WTO commitments with a focus on financial services, e-payments and FinTech, and includes an MFN clause to future-proof our services trade.
“New Zealand exporters will enjoy duty-free access for dairy and other food ingredients for re-export through the FTA,?opening?the door?to?greater collaboration?and processing,?and?offer?access to India’s?growing number of FTA partners?through a?dedicated fast-track mechanism,” McClay noted.
“We've also agreed to review the FTA one year after entry into force, which provides a mechanism to pursue further improvements in the future,” McClay added.
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