India FTA bill passes first reading

Legislation to implement the historic New Zealand – India Free Trade Agreement (FTA) has passed its first reading, Trade and Investment Minister Todd McClay says. 

“India is one of the world’s largest economies and is the fastest-growing economy in the G20. With a GDP equivalent to seven trillion New Zealand dollars and an average growth of 8.25 percent since 2021, India represents a major opportunity for New Zealand businesses.

“Many New Zealand products are effectively locked out of the India market because of high tariffs and restrictive quotas. This FTA will level the playing field for Kiwi businesses in the India market because it will reduce or eliminate tariffs on 95 per cent of New Zealand’s exports to India, when fully implemented. 

“From day one, 57 per cent of our exports will be tariff-free. This will unlock new opportunities to grow our goods and services exports into a market of 1.4 billion people and contribute to achieving the Government’s goal of building the future by doubling the value of exports by 2034. 

“The FTA also futureproofs our wine exports and priority services access by securing a Most-Favoured-Nation commitment, which ensures that we will automatically benefit from improved access given to other Indian FTA partners. 

“The Bill will be referred to the Foreign Affairs, Defence and Trade Committee where the public will have an opportunity to make submissions. We are working towards ratification later this year, after the select committee has completed its process and the implementing bill is passed.” ...