India Opens Doors to New Zealand Goods with Immediate Duty-Free Access on Over Half of Exports
India-New Zealand FTA concluded: 54.11% of NZ exports get duty-free access from day one.
India has agreed to grant duty-free access to 54.11% of New Zealand’s exports from the very first day of implementing their newly concluded Free Trade Agreement (FTA). The announcement was made on Monday as both nations formally wrapped up negotiations. The agreement is expected to come into force within the next 7–8 months after the signing process is completed.
According to the commerce ministry, products receiving immediate zero-duty access include sheep meat, wool, coal, and several forestry and wood-based items. The share of New Zealand exports enjoying duty-free treatment will gradually rise to 79% over a 10-year period. Reduced or zero tariffs are expected to lower prices for Indian consumers and boost bilateral trade.
India has also offered phased tariff elimination on several industrial inputs such as iron, steel, scrap aluminium, and selected seafood items including salmon and mussels. Duties on seafood will be removed over seven years, while metal-related items will see duty elimination within 10 years or less. These concessions were introduced to support cost-effective manufacturing for Indian industries.
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Sensitive agricultural imports such as apples, kiwifruit, manuka honey, and milk albumin will be regulated through tariff-rate quotas (TRQs), minimum import prices (MIP), and safeguard mechanisms. For apples, India will allow duty concessions on 32,500 metric tonnes in the first year, rising to 45,000 MT by the sixth year at a reduced 25% duty and an MIP of $1.25 per kg.
Similarly, kiwifruit imports from New Zealand will receive gradual concessions, with duty-free access extended to 15,000 MT by the sixth year under an MIP of $1.80 per kg. India will also eliminate import duties on avocados and persimmons over a 10-year period, mirroring terms included in the India–Australia FTA. Officials emphasized that quota levels remain conservative to protect domestic farmers.
Overall, the India–New Zealand FTA balances trade liberalisation with domestic safeguards, aiming to strengthen economic ties while ensuring stability for India’s agricultural and industrial sectors.
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