India–New Zealand trade deal takes effect with unequal tariff schedules
India and New Zealand began applying their free trade agreement on 20 October. Indian goods gain duty-free access to New Zealand, while India’s concessions vary by product and phase. Wellington says 57 per cent of its current exports to India receive immediate duty-free access. Sensitive Indian agricultural sectors remain excluded, with quotas covering selected products. The next reduction round is planned for January.
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Preferential trade begins
India and New Zealand began applying their free trade agreement on 20 October. Customs duties on Indian goods exports to New Zealand were removed, while selected New Zealand products entering India received tariff concessions under a different schedule.[1], [2]
Wellington says 57 per cent of New Zealand’s current exports to India gain immediate duty-free access, rising to 82 per cent over time. Tariffs are to be removed or reduced on 95 per cent of exports; that broader measure also includes reductions short of full elimination.[1]
Product quotas and protected sectors
Sheep meat, wool, coal and most forestry and wood exports receive immediate tariff elimination. Apples, kiwifruit and milk albumin have quota arrangements. Wine duties, currently 150 per cent, are scheduled to fall to either 25 per cent or 50 per cent over ten years, depending on the category.[1]
India retained exclusions for sensitive sectors including dairy products, sugar and some oils. The next tariff-reduction round is planned for January. New Zealand removed duties of up to 10 per cent on Indian apparel and textile products.[1]
Services and customs commitments
The agreement also covers services, temporary work opportunities and investment facilitation. New Zealand’s ministry says India will release goods through customs within 48 hours and endeavour to release perishables and express consignments within 24 hours. Better services and wine terms granted to other trading partners are to be extended to New Zealand.[1]
