India, New Zealand seal free trade deal

New Delhi: India and New Zealand on Monday announced the conclusion of talks for a free trade agreement that will give duty-free access to a range of domestic goods, particularly from labour-intensive sectors, and includes an FDI commitment of USD 20 billion over 15 years.

The agreement is expected to help double bilateral trade in goods and services to USD 5 billion in five years. On the other hand, New Zealand will get duty-free access to goods such as sheep meat, wool, coal and over 95 per cent of forestry and wood articles.

Under the pact, Wellington will get duty concessions on a number of other items such as kiwi fruit, wine, some seafood, cherries, avocados, persimmons, bulk infant formula, Manuka honey and milk albumins. To protect the interests of domestic farmers and MSMEs, India will not give any duty concessions in the politically sensitive dairy sector, like milk, cream, whey, yoghurt, and cheese.

The other products which will not be covered under the pact include vegetable products (onions, chana, peas, corn, almonds), sugar, artificial honey, animal, vegetable or microbial fats and oils, arms and ammunition, gems and jewellery, copper and its products, and aluminium and articles. As regards the services sector, New Zealand will give a temporary employment entry visa pathway for Indian professionals in skilled occupations with a quota of 5,000 visas annually and a stay of up to three years.