Top News

New Delhi: The legal review of the Free Trade Agreement (FTA) between New Zealand and India has been successfully completed. Both nations are set to sign the agreement on April 27 in New Delhi, with a significant presence of business representatives from both countries, as announced by Trade and Investment Minister Todd McClay on Monday.

McClay emphasized the significance of this agreement, stating, “This once-in-a-generation deal provides our exporters with unparalleled access to a market of 1.4 billion people and an economy poised to become the world's third-largest.”

He highlighted the critical nature of this trade agreement amidst global instability, asserting that it is vital for New Zealand's economic growth.

The signing of the FTA will trigger a formal parliamentary treaty review, allowing the public to examine the agreement thoroughly, according to the minister.

Additionally, the agreement ensures that New Zealand can benefit from a Most Favoured Nation clause for wine and services exports. If the agreement is enacted first, New Zealand's exporters will automatically gain improved access similar to that secured by the European Union, potentially adding tens of millions of dollars to the New Zealand economy.

Finalized in December, this historic agreement will eliminate or reduce tariffs on 95% of New Zealand's exports, ranking among the highest of any FTA with India. From day one, nearly 57% of exports will be duty-free, including lamb, wool, coal, leather, and various forestry and industrial products.

This percentage will rise to 82% upon full implementation, covering infant formula, a kiwifruit quota nearly four times the current exports, and seafood. The remaining 13% of products, such as kiwifruit, apples, mānuka honey, wine, and certain dairy items, will see significant tariff reductions.

McClay confirmed that the government will adhere to the established parliamentary treaty review process for the India FTA, allowing ongoing consideration and public scrutiny of the agreement.

The signing will initiate the standard parliamentary procedure, enabling Parliament and the public to review the agreement through the Select Committee. The FTA text and National Interest Analysis will be presented in Parliament the day after the signing and referred to the Foreign Affairs, Defence and Trade Committee (FADTC), as per the official announcement.

Following the FADTC's review, enabling legislation will be introduced, adhering to the usual legislative process. This method aligns with the approaches taken for the TPP, CPTPP, and agreements with the United Kingdom, European Union, and United Arab Emirates.