India, New Zealand FTA to come into force from October 20

New Delhi: Free trade agreement between India and New Zealand, which was signed in April this year, will come into effect from October 20, paving the way for duty-free access for Indian goods in New Zealand markets.“We have chosen the auspicious day Vijay Dashmi for the entry into force of the India-New Zealand FTA,” Commerce and Industry Minister Piyush Goyal told reporters on Monday.New Zealand’s Minister for Trade and Investment Todd McClay held a virtual conference with Goyal to finalise the date for implementation of the deal, which was signed on April 27.Goyal said every single tariff line covering 100% of India’s exports to New Zealand would become duty-free from the first day of the implementation of the deal.At present, New Zealand’s peak tariffs on Indian products stand at 10%. Labour intensive sectors like textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed foods are likely to gain the most from the deal.Bilateral merchandise trade between India and New Zealand stood at $1.1 billion in 2025-26. According to the minister, the deal is expected to give a decisive push to two-way trade.Investment facilitation is another important feature of the deal. As part of the deal New Zealand has committed to facilitate $20 billion investment in India.Explained | From luxury cars and Scotch whisky to medical equipment: Here’s what gets cheaper as India-UK FTA comes into effect“This investment by New Zealand will benefit Indian agriculture, manufacturing, infrastructure and start-ups,” the Ministry of Commerce and Industry said.On the other hand India has offered to reduce tariffs and provide greater market access to New Zealand through a combination of “immediate and phased tariff liberalisation and tariff rate quotas.”Around 30% of tariff lines will enjoy immediate duty-free access, covering products such as wood, wool, sheep meat, leather products-raw hides etc. A further 35.6% of tariff lines will see progressive tariff elimination over periods ranging from 3 to 10 years, including petroleum oils, malt extracts, vegetable oils, peptones, selected electrical and mechanical machinery.“A calibrated market access has been structured for New Zealand’s apples, kiwifruit and Manuka honey through Tariff Rate Quotas with Minimum Import Price and seasonal import windows, alongside safeguards to protect domestic farmers,” the commerce ministry said.The FTA with New Zealand offers opportunities for engineering goods exporters to diversify their product line-up. With the trade agreement coming into force next month, we can certainly target the doubling of engineering exports in the next five years to $280-300 million, said Pankaj Chadha, Chairman, Engineering Export Promotion Council (EEPC) India.

Source: Deccan Herald