The India-New Zealand Free Trade Agreement (FTA) provides protection to farmers, rural economies and domestic industries, says a report by the Union Ministry of Commerce and Industry. As part of this protection of sensitive sectors, market access excludes dairy products, key agricultural products. coffee, milk, cream, cheese, yogurts, whey, caseins, onions, sugar, spices, edible oils and gum.
India-New Zealand Agreement: “Calibrated Market Access, Protected Sensitive Sectors”
India has offered to liberalize tariffs on 70.03% of tariff items covering 95% of bilateral trade value, leaving 29.97% of tariff items excluded to protect India’s sensitive industries, the statement added.
Excluded products are:
Other protective measures include:
“Protect agricultural productivity, farmers’ incomes and rural economies”
- Market access for selected agricultural products (apples, kiwifruit and Mānuka honey) and albumin from New Zealand will be managed through a tariff quota system with a minimum import price and other safeguards to ensure quality imports and consumer choice while protecting domestic farmers.
- All tariff quotas for apples, kiwifruit and manuka are linked to agricultural productivity action plans and monitored by the Joint Agricultural Productivity Council (JAPC), balancing market access with the protection of sensitive domestic agricultural sectors.
“Shared ambition, deepening engagement, commitment to mutually beneficial growth”
India and New Zealand today signed a Free Trade Agreement in New Delhi, which aims to strengthen India’s global economic partnerships and marks a new and significant chapter in the bilateral relationship with New Zealand. Todd McClay, the southern country’s trade and investment minister, called it a “once-in-a-generation” opportunity in a statement that will boost exports, create jobs and strengthen bilateral economic ties.
McClay also highlighted the strong participation of New Zealand businesses in the signing, saying the pact will improve market access, reduce trade barriers and support small and medium-sized businesses.
Further, Indian Commerce and Industry Minister Piyush Goyal called the deal a “defining milestone in India’s engagement with the developed world”. He added that this is India’s ninth such agreement in the last few years — with 38 developed countries.
“At the heart of the agreement is boosting exports, agricultural productivity, student mobility, skills, investment and services. The $20 billion investment commitment from New Zealand signals strong confidence in India’s growth story. It places particular emphasis on empowering small and medium enterprises, supporting innovation and enabling women-led businesses to thrive in global markets,” said Goyal.
