NEWS: India and New Zealand are negotiating a Free Trade Agreement (FTA) to boost bilateral trade, investment, services, and long-term economic cooperation.

Present Status of Trade

• Bilateral merchandise trade: ~USD 1.3 billion (FY 2024–25).
• India's exports: USD 711 million, with 32% YoY growth.
• Trade remains below its full potential.

Key Features of the Proposed FTA

• 100% duty-free access for Indian exports to New Zealand.
• Proposed USD 20 billion investment over the next 15 years.
• Greater market access for services and skilled professionals.
• Focus on trade facilitation, regulatory cooperation, and smoother customs procedures.

Benefits

• Boosts exports of Textiles, Apparel, Leather, and Handicrafts.
• Expands opportunities in IT, Healthcare, Engineering, Education, and Consulting Services.
• Reduces transaction costs through digital certification and faster customs clearance.
• Improves supply chain efficiency and ease of doing business.

India's Approach

• Protects sensitive sectors, especially the Dairy sector, while expanding trade opportunities.
• Balances trade liberalisation with protection of domestic producers.

Rules of Origin (RoO)

• Products must satisfy origin criteria to claim FTA benefits.
• Prevents transshipment of third-country goods.
• Requires proper documentation, traceability, and compliance.

Reduction of Non-Tariff Barriers (NTBs)

• Simplifies regulatory approvals.
• Benefits sectors such as Pharmaceuticals, Food Processing, Chemicals, and Agriculture.