Legal verification of the new New Zealand-India Free Trade Agreement (FTA) has been completed, with both countries agreeing its signing on 27 April in New Delhi.
Trade and Investment Minister Todd McClay said the “once-in-a-generation” agreement gives New Zealand exporters unprecedented access to 1.4 billion people and an economy set to become the third-largest in the world.
“With so much global unrest, a trade agreement with India has never been more important for New Zealand’s prosperity,” Mr McClay says.
“Signing the FTA allows New Zealand to initiate a formal parliamentary treaty examination and means the public can scrutinise the agreement in full.
“Signature also ensures we remain on track to benefit from a Most Favoured Nation clause for wine and services exports. The European Union has secured better access for wine and services which will automatically be extended to our exporters if our agreement enters into force first. This will be worth tens of millions of dollars in extra exports for the New Zealand economy,” he said.
The historic agreement was concluded in December and eliminates or reduces tariffs on 95% of New Zealand’s exports – among the highest of any Indian FTA. Almost 57% of New Zealand exports will be duty-free from day one including lamb, wool, coal, leather, most forestry and industrial products. This will increase to 82% when fully implemented including infant formula, a kiwifruit quota almost four times current exports and seafood. The remaining 13% including kiwifruit, apples, mānuka honey, wine and some dairy is subject to sharp tariff cuts.
Mr McClay confirmed the Government will follow the established parliamentary treaty examination process for the India FTA, allowing all parties to continue considering their support as the public also scrutinises the agreement.
Signing will activate the standard parliamentary process, allowing Parliament and the public to scrutinise the agreement through the Select Committee. The FTA text and National lnterest Analysis will be tabled in Parliament the day after signing and referred to the Foreign Affairs, Defence and Trade Committee (FADTC).
Once FADTC has completed its examination, enabling legislation will be introduced and will follow the usual legislative process. This approach is consistent with that taken for the TPP, CPTPP, and agreements with the United Kingdom, European Union, and United Arab Emirates.
“The business community, the primary sector, the services sector and many New Zealanders have expressed their strong support for this important trade agreement,” Mr McClay says.
“The benefits of the New Zealand-India FTA will be available to all Kiwis for many generations to come,” he said.
