The India-New Zealand Free Trade Agreement (FTA) will come into force on October 20, Commerce and Industry Minister Piyush Goyal announced on September 21. The two countries signed the agreement on April 27 to expand trade in goods and services and encourage investment.
The pact will provide 100 per cent duty-free access for Indian exports to the New Zealand market from the date it takes effect. New Zealand currently imposes tariffs of up to 10 per cent on several Indian products, including ceramics, carpets, automobiles and auto components.
New Zealand has also committed to investing $20 billion in India over the next 15 years. The agreement includes provisions aimed at improving mobility for students and workers.
On the New Zealand side, around 95 per cent of exports to India will have tariffs eliminated or reduced once the agreement is fully implemented. About 57 per cent will become tariff-free from the first day, covering products such as sheep meat, wool and coal. Duty-free coverage is expected to rise to 82 per cent over time.
The two countries have also committed to doubling bilateral trade by 2030. Bilateral trade is valued at about $2.3 billion annually, according to Reuters.
The agreement comes as India seeks to expand its export markets and attract investment amid changes in global trade conditions.
