India and New Zealand conclude free trade agreement

A free trade agreement between India and New Zealand is expected to increase trade between the two nations by hundreds of millions of dollars.

The agreement between New Delhi and Wellington was confirmed on Monday, with the announcement that it would be officially signed in the first quarter of next year.

Due to the uncertainty brought on by US President Donald Trump’s extensive tariffs, governments around the world are making the announcement.

India will be able to export all goods to New Zealand duty-free under the terms of the agreement. About 70% of India’s tariff lines, which cover roughly 95 percent of New Zealand’s exports to India on a gradual basis, will be subject to duty concessions and market access, according to officials.

With anticipated gains in horticulture, wood products, and sheep wool, New Zealand is attempting to expand its exports of dairy, fruit, wool, and wine to India.

Textiles and apparel, engineering goods, leather and footwear, and marine products are expected to be the main industries that India will profit from tariff-free access to New Zealand’s market.

According to the Indian Ministry of Commerce and Industry, New Zealand will commit to investing in India for a $20 billion project over the next 15 years, while skilled Indian professionals should have easier access to the job market in New Zealand.

Countries are less prone to rising protectionism and US import tariff increases as a result of Trump’s unconventional economic policies, which has sparked bilateral trade agreements.

As part of a wider plan to protect its economy, New Delhi has made more efforts to expand its export destinations.

Prime Minister Narendra Modi put that pressure on the front foot as he welcomed Vladimir Putin from Russia earlier this month for talks on trade and the inevitably contentious subject of geopolitical tensions.

New Delhi is still attempting to maintain a long-standing balancing act between the West and the East. Piyush Goyal, the country’s commerce minister, said that on Monday. India is also pursuing agreements with the US and Canada in addition to the deal with New Zealand.

According to New Zealand Prime Minister Christopher Luxon, the deal’s exports to India are projected to increase by $1.1 billion to $1.3 billion annually over the next 20 years.

According to Luxon, “boosting trade means more Kiwi jobs, higher salaries, and more opportunities for hard-working New Zealanders.”

The right-wing New Zealand First, a populist party, has criticized the agreement, though.

According to a statement cited by The New Zealand Herald, party leader Winston Peters claimed the agreement “gives too much away, especially regarding immigration.”

Additionally, the agreement could compromise some Indian sensibilities.

In a nod to those concerns, New Delhi has forbid dairy imports from the agreement, along with a number of animal and vegetable products, including goat meat, onions, and almonds, as well.