\n\t\t\t\t\t\t\tFind out more <\/a><\/p>\nMeanwhile, India\u2019s Ministry of Commerce and Industry said in a statement New Zealand was its second-largest trading partner in Oceania last year with two-way trade valued at US$1.3bn.<\/p>\n
For New Zealand, tariffs on more than half of its exports will be eliminated immediately as soon as the agreement comes into force, and 80% will become tariff-free once the deal is fully \u201cphased\u201d in.<\/p>\n
As part of the agreement, Indian companies will be able to import ingredients duty free for use in the production of exports.<\/p>\n
\u201cWith India aiming to become a \u2018global food hub\u2019 for food processing, this arrangement aims to create new opportunities for New Zealand businesses, notably agricultural, including dairy exporters, to gain a valuable foothold in the supply chain for India\u2019s fast-growing food manufacturing sector,\u201d the trade department said<\/p>\n
The New Zealand trade department said average tariffs on New Zealand shipments to India will \u201cdrop sharply\u201d to 3%.<\/p>\n
New Zealand estimates it will save NZ$43m from tariffs straight away and that will likely rise to NZ$62m based on current trading levels.<\/p>\n
The current 150% tariff on New Zealand wine will be reduced by 66-83% over ten years to around 25-50%.<\/p>\n
Philip Gregan, the CEO of the New Zealand Wine Growers association, said: \u201cIndia represents a significant long-term opportunity for New\u202fZealand wine, and sustained cross-party commitment will be key to delivering a high-quality agreement with real commercial outcomes.\u201d<\/p>\n
He added: \u201cWineries will be able to plan with confidence around a clear, decade-long tariff reduction pathway. While current exports to India are very modest, just under NZ$300,000 (FOB) in 2025 due to the very high tariffs, improved market access under the FTA is expected to make India increasingly attractive to New Zealand wine exporters over the coming years.\u201d<\/p>\n
The 33% tax on New Zealand infant formula and \u201cother dairy-based food preparations\u201d will be phased out over seven years.<\/p>\n
Sheep meat from New Zealand will benefit immediately with the 33% tariff wiped out on day one of the agreement.<\/p>\n
The same 33% rate currently applied to fish and seafood will also be phased out over a seven-year period.<\/p>\n
M\u0101nuka honey from New Zealand is another beneficiary, with tariff rates expected to drop from 66% to 16.5% over five years for products priced at or above US$30\/kg.<\/p>\n
The same tariff will apply to M\u0101nuka honey products priced from US$20-30\/kg based on volumes of 200 tonnes.<\/p>\n
\u201cThis is the first time India has granted preferential access for honey and provides a significant opportunity for growth, with recent average exports just seven tonnes per annum,\u201d the New Zealand Foreign Affairs and Trade department said.<\/p>\n
Exports of horticulture products, including apples and kiwifruit, from New Zealand will enjoy new quotas.<\/p>\n
\u201cNew Zealand is the first country to secure access for apples into India in any FTA and has secured the best access of any significant kiwi fruit exporter, with duty-free quota access and a 50% tariff reduction outside the quota,\u201d the trade office added.<\/p>\n
Tariffs will also be phased out for cherries and avocados..<\/p>\n
The text of the agreement now needs to be \u201clegally verified and prepared for signature\u201d.<\/p>\n
Shri Piyush Goyal, India\u2019s minister for commerce and industry, said: \u201cAt the heart of the agreement is the empowerment for exports, agricultural productivity, student mobility, skills, investment and services.<\/p>\n
\u201cThe investment commitment of US$20 billion from New Zealand signals strong confidence in India\u2019s growth story.\u201d<\/p>\n
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