India and New Zealand Sign Landmark Free Trade Agreement to Safeguard Farmers and Boost Exports
India-New Zealand free trade agreement: How India plans to protect sensitive sectors, farmer incomes, rural economies
Mint
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India and New Zealand have signed a Free Trade Agreement (FTA) aimed at protecting sensitive sectors, including agriculture, while enhancing bilateral trade. The agreement allows tariff liberalization on 70.03% of tariff lines, excluding key agricultural products to safeguard farmer incomes and rural economies.
- 01The FTA protects sensitive agricultural sectors by excluding key products from tariff liberalization.
- 02India offers tariff liberalization on 70.03% of tariff lines, covering 95% of bilateral trade value.
- 03A Tariff Rate Quota system will manage market access for select agricultural imports from New Zealand.
- 04The agreement is expected to boost exports and create jobs, with a $20 billion investment commitment from New Zealand.
- 05This marks India's ninth FTA with developed countries, emphasizing its growing global economic partnerships.
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India and New Zealand signed a significant Free Trade Agreement (FTA) in New Delhi, focusing on protecting sensitive sectors such as agriculture while promoting bilateral trade. The agreement allows India to liberalize tariffs on 70.03% of tariff lines, which covers 95% of the trade value between the two nations. However, crucial agricultural products like dairy, onions, and sugar are excluded to safeguard local farmers and rural economies. The FTA includes a Tariff Rate Quota system for select imports from New Zealand, ensuring quality while protecting domestic producers. New Zealand's Minister for Trade and Investment, Todd McClay, described the agreement as a “once-in-a-generation” opportunity that will enhance exports and create jobs. India's Union Minister for Commerce and Industry, Piyush Goyal, highlighted the $20 billion investment commitment from New Zealand, which reflects confidence in India's economic growth and aims to empower exports, agricultural productivity, and innovation.
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The FTA is expected to protect farmer incomes and enhance agricultural productivity, which could stabilize prices for consumers and create job opportunities in rural areas.
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