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by IANS |
New Delhi, April 27 (IANS) India and New Zealand are set to sign a long-awaited free trade agreement (FTA) on Monday to significantly boost bilateral trade, investments and market access across sectors.
The agreement will be signed at Bharat Mandapam in the presence of Union Commerce Minister Piyush Goyal and his New Zealand counterpart, Todd McClay.
The pact is aimed at doubling bilateral trade to $5 billion over the next five years and is expected to open new avenues for Indian exporters, particularly at a time when global uncertainties, including tensions in West Asia, are impacting trade flows.
It will also facilitate an estimated $20 billion investment from New Zealand into India over the next 15 years across sectors such as manufacturing, infrastructure, services, innovation and job creation.
Under the agreement, Indian companies will gain duty-free access to New Zealand’s markets, while New Zealand will see tariffs eliminated or reduced on about 95 per cent of its exports to India.
These include products such as wool, coal, wood, wine, seafood, cherries, avocados and blueberries.
However, India has kept sensitive sectors like dairy, onions, sugar, spices, edible oils and rubber outside the scope of tariff concessions to safeguard domestic farmers and industries.
New Zealand will also receive quota-based tariff reductions for key exports such as kiwifruit and apples.
At the same time, it will enjoy duty-free access to items including sheep meat, wool and forestry products, while benefiting from reduced duties on products like Manuka honey, infant formula and certain seafood items.
A key feature of the pact is enhanced mobility for professionals. New Zealand has agreed to provide a temporary employment visa pathway for up to 5,000 Indian professionals annually, allowing stays of up to three years.
The pact also includes provisions to address non-tariff barriers through better regulatory cooperation, streamlined customs procedures and improved sanitary and phytosanitary measures.
On Sunday, Goyal and McClay participated in an Industry Engagement Programme at Agra.
“New Zealand's rich raw leather resources, combined with India's manufacturing capabilities, offer a strong complementarity that both sides expressed keenness to harness. On the occasion, both ministers, along with Industry representatives, spoke of positioning Agra as a global sourcing destination, an employment engine, and an export powerhouse on the world stage," the Commerce Ministry statement said.
Agra, which accounts for approximately 75 per cent of India's leather footwear production, holds a Geographical Indication (GI) tag for its leather footwear and is a flagship product under the One District One Product scheme.
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