India, New Zealand sign FTA with tariff relief and USD 20 bn investment pledge

Union Minister of Commerce and Industry Piyush Goyal (left) with New Zealand Minister of Trade and Investment Todd McClay during the signing of FTA, in New Delhi, on Monday. PIC/PTI

India and New Zealand on Monday inked a Free Trade Agreement (FTA), aimed at boosting two-way commerce and investments. The pact was signed by Commerce and Industry Minister Piyush Goyal and visiting New Zealand's Trade and Investment Minister Todd McClay.

The FTA provides duty-free access for 100 per cent of India's exports to New Zealand, covering all tariff lines or produce categories. India has offered tariff liberalisation on 70.03 per cent of tariff lines covering 95 per cent of bilateral trade value, while keeping 29.97 per cent of tariff lines excluded to protect sensitive sectors.

On 30 per cent of tariff lines of New Zealand, India will provide duty elimination on goods such as wood, wool, sheep meat, and leather-raw hides. Similarly, 35.60 per cent of tariff lines are subject to phased elimination over 3, 5, 7, and 10 years, including petroleum oil, malt extract, vegetable oils, selected electrical and mechanical machinery, and peptones.

Under the pact, New Zealand has committed to invest around $20 billion in India over the next 15 years, while also easing trade barriers and simplifying standards and dispute settlement mechanisms.

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