New Delhi, April 26 (IANS). Free Trade Agreement (FTA) between India and New Zealand will be signed on Monday. This will promote bilateral trade, investment and market access in all sectors between the two countries.
The agreement will be signed at the Bharat Mandapam in the presence of Union Commerce and Industry Minister Piyush Goyal and his counterpart Todd McClay, which will be a major step towards strengthening economic ties between the two countries.
The agreement aims to double bilateral trade to $5 billion over the next five years and is expected to open up new opportunities for Indian exporters, especially at a time when global uncertainties, including tensions in West Asia, are impacting trade flows.
On this FTA, New Zealand Prime Minister Christopher Luxon said in a video posted on social media on Sunday that the FTA with India will give New Zealand exporters an opportunity to invest in a market with a population of 1.4 billion. This is a once in a generation opportunity.
The agreement will also open avenues for investment of an estimated $20 billion from New Zealand to India over the next 15 years in sectors such as manufacturing, infrastructure, services, innovation and job creation.
Under the agreement, Indian companies will get duty-free entry into New Zealand markets, while New Zealand will see duty exemptions or reductions on about 95 percent of its products exported to India.
These products include wool, coal, lumber, wine, seafood, cherries, avocados, and blueberries.
However, India has kept sensitive sectors like dairy, onion, sugar, spices, edible oil and rubber out of the scope of duty exemption to protect domestic farmers and industries.
New Zealand will also receive a reduction in quota-based tariffs on key exports such as kiwi fruit and apples.
Additionally, it will gain duty-free entry on many goods including sheep meat, wool and forestry products, while also benefitting from duty reductions on manuka honey, baby foods and some seafood.
A key feature of the agreement is easy mobility for professionals. New Zealand has agreed to provide temporary employment visas for 5,000 Indian professionals annually, allowing them to stay for up to three years.
This will include a wide range of professions including IT, engineering, healthcare, education and construction, as well as traditional professions such as yoga instructors, AYUSH practitioners, cooks and music teachers.
The agreement also aims to strengthen cooperation in the agricultural sector through a special agro-technology action plan focused on products such as kiwi, apple and honey.
Additionally, New Zealand has committed to support India’s geographical indications by amending its laws to facilitate the registration of Indian wines and spirits.
The agreement also includes provisions to remove non-tariff barriers through better regulatory cooperation, streamlined customs procedures and improved sanitary and phytosanitary measures.
–IANS
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