India and New Zealand have agreed a free trade agreement. The agreement aims to enhance trade and investment, with New Zealand seeking greater market access for dairy and fruit, while India is prioritising the movement of skilled professionals and IT services.
The New Zealand apple and pear sector is delighted with today's announcement of a Free Trade Agreement (FTA) with India, which includes a reduction on apple and pear access to India.
The milestone achievement includes a quota for New Zealand apples to receive a 50 percent reduction on tariff (from 50 percent to 25 percent), during the window from 1 April to 31 August, focusing access on counter seasonal supply to India's own apple industry. The reasonable quota allows for significant growth over the next six years.
Pear access into India also received a 50 percent to reduction on tariffs, with no quota limitations.
The agreement holds unprecedented opportunities for New Zealand's premium apple and pears in one of the world's fastest-growing markets, says Danielle Adsett, NZAPI Acting General Manager.
"Christmas has come early for our growers with this announcement. India is currently the fifth-largest economy globally and this agreement holds untold potential for New Zealand's pipfruit sector. It will play a pivotal role in achieving NZAPI's ambition of becoming a $2 billion export sector by 2035.
"While the speed and efficiency of this FTA has been remarkable, in many ways it has also been a long time for our industry. Collaboration between Indian and New Zealand apple growers has been ongoing since the 1990s and the first World Bank Apple Industry Development Project.
New Zealand apples will now enjoy increased access to India, opening doors to a market of 1.4 billion people and a rapidly expanding middle class. India, already the world's largest population, is projected to become the third-largest economy by 2030, offering immense potential for exporters.
Zespri also welcomed the conclusion of the Free Trade Agreement, marking a new era in the relationship and unlocking an enormous opportunity for kiwifruit.
Under the agreement and in a first for India, New Zealand growers will see the tariff on kiwifruit exports into India removed on up to 15,000 tonnes per year, with all volume on top of that subject to a reduced tariff of 16.5 percent, down from the current 33 percent. Zespri's sales into India have been heavily constrained by the tariff which cost New Zealand growers $9 million on $27 million of sales last season. Zespri sold around 7,200 tonnes into India this year.
In return the Kiwifruit Action Plan (KAP) will be launched as a flagship deliverable under the FTA, with the New Zealand Institute for Bioeconomy Science Ltd (BSI) and the New Zealand kiwifruit industry working alongside Indian kiwifruit growers in rural communities to support improved production and supply chain performance.
Zespri CEO Jason Te Brake says the agreement unlocks one of the world's largest markets for New Zealand growers.
"India represents a huge opportunity for kiwifruit, with the world's largest population and fastest-growing large economy. Indian consumers are increasingly focused on health and wellbeing and looking for high quality, nutritious products to support this. The market access delivered through the FTA will allow us to invest to build high-value demand, providing the world's best kiwifruit to more Indian consumers and delivering leading value to growers."
"Zespri and Plant & Food Research (now part of the New Zealand Institute for Bioeconomy Science Ltd) have been working closely for several years with the governments of New Zealand and India to improve kiwifruit market access in return for supporting local growers whose product is counter-seasonal to New Zealand. To demonstrate the value of this partnership, the work included extensive two-way engagement, visits and the preparation of a comprehensive scoping study to support delivery of the cooperation. The conclusion of the FTA has made this a reality.
For more information:
Apples and Pears NZ
Jessica Wauchop
[email protected]
Zespri
Anna Cross
[email protected]
