Committee backs India FTA Bill
Trade and Investment Minister Todd McClay is welcoming the support of Parliament’s Foreign Affairs, Defence and Trade Committee for the passing of the India Free Trade Agreement Legislation Amendment Bill.
“The India Free Trade Agreement is a high quality one that will provide huge opportunities to New Zealand exporters,” says Mr McClay. “I’m pleased the committee has recommended that Parliament pass this legislation, an important step towards New Zealand ratifying the deal.
“I would like to thank the select committee for its considered examination and support for this bill. There is strong support for this important agreement across the business community, the primary sector, the services sector and many New Zealanders up and down the country,” Mr McClay says.
“The entry into force of the FTA will mark a new beginning for Kiwi exporters in the fast-growing Indian market. It will reduce or eliminate tariffs on 95 per cent of New Zealand’s exports to India when fully implemented, creating significant new opportunities for Kiwi businesses with improved access to 1.4 billion people.
“The Government is continuing to work towards ratification later this year, with the second reading of the India FTA Bill the next step in the legislative process.”
Notes to editors:
The Committee’s report on the bill was published today.
Key FTA outcomes for New Zealand include:
Tariff elimination or reduction on 95 per cent of our exports when fully implemented.
Duty-free access on 57 per cent of New Zealand’s exports from day one, increasing to 82 per cent when fully implemented, with the remaining 13 per cent being subject to sharp tariff cuts.
Immediate tariff elimination on sheep meat, wool, coal and over 95 per cent of forestry and wood exports.
Duty-free access on most seafood exports, including mussels and salmon, over seven years.
Duty-free access on most iron, steel and scrap aluminium, over 10 years or less.
Duty-free access for most industrial products, over five to 10 years.
50 per cent tariff cut for large quota of apples – nearly double recent average exports.
Duty-free access for kiwifruit within a quota almost four times recent average exports, and tariff halved for exports outside of quota.
Duty-free access for cherries, avocados, persimmons and blueberries, over 10 years.
Tariffs on wine reduced from 150 per cent to either 25 or 50 per cent (depending on the value of the wine) over 10 years plus a Most Favoured Nation (MFN) commitment.
Tariffs on mānuka honey cut from 66 per cent to 16.5 per cent over five years.
MFN status and liberalisation across key services exports.
Duty-free access for bulk infant formula and other high-value dairy preparations over seven years.
50 percent tariff cut for high value milk albumins within a NZ-specific quota equal to current export volumes.
An arrangement on duty-free access for dairy and other food ingredients for re-export.
