Before the signing of India-New Zealand FTA, PM Lakson said – What has not happened for decades will happen today.

New Delhi, 27 April. The free trade agreement between India and New Zealand is going to be sealed on Monday. New Zealand Prime Minister Christopher Luxon expressed his happiness on social media regarding the India-New Zealand FTA, saying that for decades, people said about the FTA deal between India and New Zealand that it would not happen, but today it is going to happen. New Zealand Prime Minister Christopher Luxon wrote on social media platform

He added, “This is a once-in-a-generation deal that gives New Zealand exporters never-before access to 1.4 billion people and creates an economy that is set to become the third largest economy in the world. It means more jobs on farms and orchards, it means more money flowing into local communities and it means more opportunities for your family to get ahead.” The agreement will be signed at the Bharat Mandapam in the presence of Union Commerce and Industry Minister Piyush Goyal and his counterpart Todd McClay. This will be a big step towards strengthening economic relations between the two countries.

The agreement aims to double bilateral trade to $5 billion over the next five years and is expected to open up new opportunities for Indian exporters, especially at a time when global uncertainties, including tensions in West Asia, are impacting trade flows. The agreement will also open avenues for investment of an estimated $20 billion from New Zealand to India over the next 15 years in sectors such as manufacturing, infrastructure, services, innovation and job creation.

Under this agreement, Indian companies will get entry into New Zealand markets without any duty. At the same time, India will see exemption or reduction in duty on about 95 percent of its products imported from New Zealand. These products include wool, coal, lumber, wine, seafood, cherries, avocados, and blueberries. However, India has kept sensitive sectors like dairy, onion, sugar, spices, edible oil and rubber out of the scope of duty exemption to protect domestic farmers and industries.

New Zealand will also receive a reduction in quota-based tariffs on key exports such as kiwi fruit and apples. Additionally, it will gain duty-free entry on many goods including sheep meat, wool and forestry products, while also benefitting from duty reductions on manuka honey, baby foods and some seafood. A key feature of the agreement is easy mobility for professionals.

New Zealand has agreed to provide temporary employment visas for 5,000 Indian professionals annually, allowing them to stay for up to three years. This will include a wide range of professions including IT, engineering, healthcare, education and construction, as well as traditional professions such as yoga instructors, AYUSH practitioners, cooks and music teachers.