So the opportunities offered to build that trade are significant – particularly for some of New Zealand’s economic cornerstone primary industries.
For kiwifruit and apples exports in particular, it is a landmark deal.
The two export sectors gain valuable new quota access, with volumes starting well above average recent trade and growing.
New Zealand is the first country to secure preferential access for apples in any Indian FTA and the first kiwifruit exporter to secure tariff-free access plus a 50% tariff reduction outside quota.
The deal also won phased tariff elimination on other horticultural products, including cherries, avocados, blueberries and persimmons.
Tariffs will be removed immediately on sheep meat and wool, while tariffs on New Zealand’s key fish and seafood exports will be phased out over seven years.
For forestry – a major export to India – more than 95% of exports will be able to enter tariff-free immediately from entry, with tariffs on almost all our existing trade phased out over seven years.
Tariffs on New Zealand wine are reduced by 66-83% over 10 years from entry into force, with any further improvements to other India FTA partners to be extended to New Zealand.
Tariffs on mānuka honey are cut by 75% over five years, making New Zealand the first country to secure preferential access for honey in any Indian FTA.
For the dairy export sector, tariffs on bulk infant formula and other dairy-based preparations and peptones, a dairy-based product, are phased out over seven years. Tariffs for albumins, a milk protein product, are halved within a quota covering average recent trade.
For dairy, the agreement includes a commitment to implement a dedicated fast-track mechanism to facilitate the supply of New Zealand products duty-free to India for further manufacturing and export. This includes dairy ingredients and according to the Government, opens a door for greater collaboration and creates new opportunities for Kiwi exporters in India’s supply chains – including into India’s growing number of FTA partners.
India has also committed that should it offer dairy access to comparable countries in future, it will consult with New Zealand on the potential to extend similar treatment to this country.
As well as providing key exporters with significant tariff reductions, the Government says the FTA opens new access to India’s middle class, expected within five years to be a larger market than the population of the EU or Southeast Asian nations.
It also provides New Zealand exporters with a more level playing field with key competitors that already have FTAs or other advantages with India, including Australia, UK and Chile, and offers greater opportunity for Kiwi exports to diversify and grow.