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New Zealand Parliament clears FTA with India: 'More jobs, higher pay for Kiwis'
PM Christopher Luxon called the deal ‘landmark’ and said that it will mean more jobs, higher income for ‘Kiwis’.
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New Zealand's Parliament has passed a Free Trade Agreement (FTA) with India, prime minister Christopher Luxon said on Wednesday, calling the move a “landmark” deal, which will ensure more jobs and higher income for ‘Kiwis’.
“People told me a Free Trade Agreement with India wasn’t possible. Well, today that deal passed its final vote in Parliament. It’s happening. This landmark deal means more jobs, higher incomes for Kiwis. It means more New Zealand products being sold in India by opening the door to 1.4 billion Indian consumers,” he wrote in a post on X.
“It’s one of the ways we will grow the economy to help you get ahead – fixing the basics and building the future.”
The FTA was cleared with lawmakers voting 93-29 in favour of the legislation, taking the bilateral trade pact closer to implementation. The bill was passed with the support of the ruling National Party and the main opposition Labour Party, securing a clear majority in Parliament, news agency ANI reported.
The FTA was signed by India and New Zealand on April 27.
“The India FTA opens the door for Kiwi exporters to one of the world’s largest and fastest-growing economies,” Trade Minister Todd McClay said in Wellington. “Parliament today overwhelmingly backed the long-term benefits the agreement will deliver for all New Zealanders," according to Bloomberg.
Commerce secretary Rajesh Agrawal said on Tuesday that India is now looking to bring the agreement into force "as soon as possible”, saying that it could potentially become operational in October.
What would the agreement provide
Under the agreement, New Zealand will provide duty-free access for all Indian exports, covering 100 per cent of tariff lines. The pact is expected to strengthen the competitiveness of India’s labour-intensive sectors and support employment in industries such as textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed foods.
As part of the agreement, New Zealand has also committed to investing USD 20 billion in India over the next 15 years, with the aim of deepening long-term economic ties and investment cooperation between the two countries, according to ANI.
For New Zealand exports entering India, the country has offered market access across 70.03 per cent of tariff lines, accounting for about 95 per cent of bilateral trade. India has excluded 29.97 per cent of tariff lines from the agreement, including sensitive sectors and products such as dairy, several agricultural commodities, sugar, certain metals and other goods.
Duties on 30 per cent of tariff lines will be eliminated immediately, covering products including wood, wool, sheep meat and raw hides. Another 35.60 per cent of tariffs will be phased out over three, five, seven or 10 years.
The agreement also provides for tariff reductions on selected products, including wine, pharmaceutical drugs, polymers and certain aluminium, iron and steel items. A limited number of products will be subject to tariff-rate quotas, including Mānuka honey, apples, kiwifruit and albumins.
The two countries have also agreed to strengthen cooperation in agriculture, with a focus on improving productivity and capabilities in sectors such as kiwifruit, apples and honey. Areas of collaboration will include planting material, research, technical assistance, orchard management, post-harvest practices, supply-chain development and food safety.
(With inputs from ANI)
