New Delhi, April 27: A significant milestone is set to be reached as India and New Zealand prepare to finalize their Free Trade Agreement (FTA) on Monday. New Zealand’s Prime Minister Christopher Luxon expressed his excitement on social media, stating that what many have deemed impossible for decades is finally coming to fruition.
Luxon shared on the social media platform X, “Just over a year ago, I met Prime Minister Modi in India. We agreed to initiate discussions on a free trade agreement. For decades, many have said it couldn’t happen. But tonight, we will sign that deal.”
He added, “This is a once-in-a-generation agreement that provides New Zealand exporters unprecedented access to 1.4 billion people, paving the way for an economy that is on track to become the world’s third-largest. This means more jobs in farms and gardens, more money flowing into local communities, and greater opportunities for your families.”
The signing ceremony will take place at the India Mandapam, attended by India’s Minister of Commerce and Industry Piyush Goyal and his New Zealand counterpart Todd McClay. This agreement marks a significant step towards strengthening economic ties between the two nations.
The FTA aims to double bilateral trade to $5 billion within the next five years, opening new opportunities for Indian exporters, especially amid global uncertainties affecting trade flows, including tensions in West Asia.
Additionally, the agreement is expected to facilitate an estimated $20 billion investment from New Zealand to India over the next 15 years, focusing on sectors such as manufacturing, infrastructure, services, innovation, and job creation.
Under the agreement, Indian companies will gain tariff-free access to New Zealand markets. Conversely, India will see reductions or eliminations of tariffs on nearly 95% of products imported from New Zealand. These products include wool, coal, timber, wine, seafood, cherries, avocados, and blueberries.
However, India has excluded sensitive sectors such as dairy, onions, sugar, spices, edible oils, and rubber from tariff reductions to protect domestic farmers and industries. New Zealand will also benefit from quota-based tariff reductions on key exports like kiwifruit and apples.
Moreover, New Zealand will grant tariff-free access for several items, including sheep meat, wool, and forestry products, while also benefiting from tariff reductions on manuka honey, baby foods, and certain seafood.
A key feature of the agreement is the facilitation of easier movement for professionals. New Zealand has agreed to provide temporary work visas for 5,000 Indian professionals annually, allowing them to stay for up to three years. This includes various sectors such as IT, engineering, healthcare, education, and construction, along with traditional professions like yoga instructors, Ayurvedic practitioners, chefs, and music teachers.
Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
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