Legal verification of the New Zealand-India Free Trade Agreement (FTA) has been completed, with both countries agreeing to sign the deal on 27 April in New Delhi.
Trade and Investment Minister Todd McClay said the agreement provides access to 1.4 billion consumers in an economy projected to become the world's third largest.
"With so much global unrest, a trade agreement with India has never been more important for New Zealand's prosperity," Mr McClay said.
"Signing the FTA allows New Zealand to initiate a formal parliamentary treaty examination and means the public can scrutinise the agreement in full.
"Signature also ensures we remain on track to benefit from a Most Favoured Nation clause for wine and services exports. The European Union has secured better access for wine and services, which will automatically be extended to our exporters if our agreement enters into force first. This will be worth tens of millions of dollars in extra exports for the New Zealand economy."
The agreement, concluded in December, removes or reduces tariffs on 95 per cent of New Zealand's exports. Around 57 per cent of exports will be duty-free from day one. This will increase to 82 per cent once fully implemented, including the kiwifruit quota, nearly four times the current export levels. The remaining 13 per cent, including kiwifruit and apples, will be subject to tariff reductions.
Mr McClay confirmed the Government will follow the standard parliamentary treaty examination process, allowing continued review by stakeholders and public scrutiny.
Following signing, the FTA text and National Interest Analysis will be tabled in Parliament and referred to the Foreign Affairs, Defence, and Trade Committee. Once the committee completes its review, enabling legislation will be introduced and will follow the standard legislative process.
This approach aligns with previous agreements, including the TPP, CPTPP, and deals with the United Kingdom, European Union, and United Arab Emirates.
"The business community, the primary sector, the services sector, and many New Zealanders have expressed their strong support for this important trade agreement," Mr McClay said.
"The benefits of the New Zealand-India FTA will be available to all Kiwis for many generations to come."
Source: Inside Government
