NZ Signs Historic India Free Trade Agreement
New Zealand and India have signed a Free Trade Agreement (FTA) described as a once-in-a-generation deal.
Agriculture Minister Todd McClay himself has been to India seven times and has met with his Indian counterpart 15 times at different forums. Officials have made many more trips and had online meetings; one official is reported as going to India nearly two dozen times.
Prime Minister Christopher Luxon has also led a trade mission to India and the horticulture sector on a fact-finding mission.
B+LNZ chair Kate Acland says the announcement is positive for sheep farmers and puts them on a level playing field with Australia, which concluded an FTA with India several years ago.
"Although the impact on farmgate returns may not be significant in the short-term, this is an important step for future resilience and profitability in the sector," she says.
Horticultural Export Authority (HEA) head Simon Hegarty says news of the FTA is a welcome positive against the current backdrop of a range of significant challenges in exporting perishable products.
He says Indian consumers will benefit from the agreement, enabling greater choice and better security of access for healthy NZ food products.
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"The phased reduction or removal of tariffs on trade with India under the FTA will provide an estimated benefit of NZ$20m to $30m annually and equates to the removal of approximately 30% of our entire horticulture tariff costs globally," he says.
HortNZ chief executive Kate Scott says the FTA is a boost for the hort sector and paves the way for new export opportunities in a market with strong long-term prospects.
"Improved access to India will further diversify horticulture's export portfolio and help drive the sector's ambitions for growth. With India forecast to become the world's third-largest economy, this FTA offers our growers and exporters an opportunity to build scale and value over time," she says.
Zespri CEO Jason Te Brake says the deal represents a huge opportunity for kiwifruit with the world's largest population and fastest-growing large economy. Indian consumers are increasingly focused on health and wellbeing and looking for high quality, nutritious products to support this.
