India-New Zealand FTA Finalised with Dairy Sector Excluded

Key facts

• India and New Zealand have concluded negotiations for a Free Trade Agreement (FTA), likely to be signed within three months and implemented next year.
• India will not open up its dairy sector under any free trade agreement, Commerce and Industry Minister Piyush Goyal asserted.
• India has sectors from duty cuts include dairy products, most animal products, vegetables & pulses, sugar, fats & oils, copper, aluminium, arms & ammunition, and gems & jewellery.
• India has provided limited market access for select agri-products using Tariff Rate Quotas (TRQ) and Minimum Import Price (MIP) safeguards.
• The India-New Zealand FTA offers India duty-free access to New Zealand’s market, while New Zealand will benefit from reduced tariffs on 95% of its exports.
• Discussions for the long-pending India-US trade deal are in an 'advanced stage,' though access to agriculture remains a point of contention.
• The FTA reflects calibrated trade liberalisation, balancing trade growth with domestic sector protection.
• New Zealand’s Foreign Affairs Minister Winston Peters termed the deal a 'low-quality' deal and announced that his New Zealand First party would oppose it in Parliament.