India FTA Removes 33% Tariff on NZ Sheepmeat
New Zealand’s red meat sector has welcomed the India-New Zealand Free Trade Agreement taking effect, which removes India’s 33% tariff on New Zealand sheepmeat.
Trade is critical to New Zealand's prosperity, and the FTAs are regarded as the next significant step forward.
However, when it comes to the proposed FTA with India - concluded by National in December - no date has been set for the signing ceremony, normally a high-profile event hosted by one of the signatory countries.
That's because the FTA faces a significant roadblock in NZ. Coalition partner New Zealand First won't support it, claiming that the proposed FTA is a "low-quality deal" and has expressed reservations around its immigration aspects.
It means the Government needs Labour's support to pass the deal through the House, but Labour is still to decide whether it will back the deal.
At a time when geopolitical issues threaten global trade and the International Monetary Fund is warning of a global recession, thanks to the Middle East unrest, NZ needs this FTA with India more than ever.
For NZ primary exporters, the benefits of an FTA with India would be huge. The deal would remove a 30% tariff for the sheep meat sector alone.
That's why an open letter, organised by BusinessNZ, and signed by 28 exporters and industry associations, such as Federated Farmers, Zespri, Seafood New Zealand and Beef + Lamb New Zealand has been sent to politicians.
However, getting the FTA over the line won't be straightforward for National.
The dairy sector - NZ's biggest primary export earner - isn't thrilled with the trade deal. Others feel the Indian FTA doesn't deliver the typical level of market access into India like, say, the Chinese FTA.
Also, being an election year and with potential kingmaker Winston Peters doubling down in his opposition to the trade deal, the political optics are huge.
The open letter urges National to sign the deal and all political parties to back it but that's easier said than done.
