India and New Zealand are poised to finalize a long-awaited free trade agreement on Monday, following months of negotiations. The deal is anticipated to enhance trade, investments, and market access between the two nations. The agreement, set to be signed at Bharat Mandapam, will be attended by Piyush Goyal and Todd McClay, signifying a significant advancement in their economic relationship.
This pact aims to double bilateral trade to $5 billion within the next five years, offering new opportunities for Indian exporters amidst global trade uncertainties. New Zealand plans to invest around $20 billion in India over the next 15 years, spanning various sectors like manufacturing, infrastructure, services, innovation, and job creation. Indian companies will benefit from duty-free access to New Zealand’s markets, while New Zealand will witness reduced or eliminated tariffs on 95% of its exports to India.
The agreement excludes sensitive sectors like dairy, onions, sugar, spices, edible oils, and rubber from tariff concessions to protect domestic industries. New Zealand will receive quota-based tariff reductions for key exports such as kiwifruit and apples. Additionally, professionals from India will have enhanced mobility opportunities under the pact, with New Zealand offering a temporary employment visa pathway for up to 5,000 Indian professionals annually.
The pact also emphasizes cooperation in agriculture through an Agri-Technology Action Plan focusing on products like kiwifruit, apples, and honey. It includes provisions to address non-tariff barriers through regulatory cooperation, streamlined customs procedures, and improved sanitary and phytosanitary measures. New Zealand has committed to supporting India’s Geographical Indications by amending its laws to facilitate the registration of Indian wines and spirits.
