New Delhi: To protect the interest of farmers and MSMEs, India has not extended any import duty concessions to New Zealand on several sensitive sectors, including dairy, animal products, vegetables, sugar, copper and aluminium, under the trade pact to be signed in the next three months.
The two countries announced the conclusion of negotiations for the free trade agreement (FTA) on Monday. The FTA is likely to be signed in the next three months and implemented next year.
Under the agreement, the products that are kept in the exclusion list are: Dairy (milk, cream, whey, yoghurt, cheese etc.), animal products (other than sheep meat), vegetable products (onions, chana, peas, corn, almonds etc.), sugar, artificial honey, Animal, vegetable or microbial fats and oils.
The list also includes Arms and Ammunition, Gems and Jewellery, Copper and Articles (Cathodes, Cartridges, Rods, Bars, Coils ), Aluminium and articles thereof (Ingots, billets, wire bars).
Further as per the agreement, India has given greater market access in certain agri goods but with quotas and minimum import price (MIP).
These goods include Manuka honey, apples, kiwi fruit and Albumins, including Milk Albumin (used in medicines and making whey protein).
Currently 66 per cent duty is there for Manuka honey, a niche product of New Zealand. India imported 14.2 tonnes (USD 0.3 million) of the commodity from New Zealand and 356.8 tonnes (USD 1.9 million) from the world.
Under the pact, India has given duty concessions for up to 200 tonnes per annum with a MIP of USD 20/kg. A 75 per cent tariff reduction will be extended over a period of five years.
Beyond this quota, the MIP will be increased to USD 30/kg.
On apples, the current applicable duty is 50 per cent; and the current imports from New Zealand are 31,392.6 tonnes (USD 32.4 million) and from the world 519,651.8 tonnes (USD 424.6 million).
India will give duty concessions for 32,500 tonnes of apples in the first year of the agreement. The quota will be increased to 45,000 tonnes in the sixth year at 25 per cent duty with MIP of USD 1.25/kg.
And beyond these quotas, a 50 per cent duty will be imposed.
Similarly, for kiwi fruit, the current applicable duty is 33 per cent. India’s imports from New Zealand stood at 5,840 tonnes (USD 16.9 million) and from the world 49,167 tonnes (USD 61.4 million).
The TRQ (tariff rate quota) will be given on 6,250 tonnes (first year), which will be increased to 15,000 tonnes in the sixth year at zero duty with MIP of USD 1.80/kg.
Beyond this quota, a 50 per cent margin of preference will come into force with MIP of USD 2.50/kg.
For albumins including milk albumin, the current duty is 22 per cent and the current imports from New Zealand stood at 3,429.7 MT (USD 28.9 million) and from world 18,801.4 MT (USD 175.3 million).
Under TRQ, the quota will be 1,000 MT in the first year of the agreement, which will be increased to 3000 MT in the fifth year.
Beyond that, the usual duty will come into force.
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