India-New Zealand Free Trade Agreement Negotiations
India is actively engaged in discussions to secure an FTA with New Zealand, focusing on protecting its vulnerable sectors, particularly in agriculture.
Key Points of the Negotiation
- Vulnerable Sectors Protection:
- Commerce and Industry Minister Piyush Goyal emphasized India's commitment to safeguarding sectors like dairy, farmers, and MSMEs.
- Dairy products are considered a "red line" due to political sensitivities, and India does not intend to compromise on this.
- Market Access and Cooperation:
- New Zealand seeks greater market access for agricultural products, including dairy and alcoholic beverages.
- India is exploring increased cooperation in farming technologies, including dairy machinery.
Progress in Negotiations
- Negotiations have reached the fourth round after a 10-year hiatus, with significant progress reported.
- The discussions originally started 15 years ago but were stalled after 10 rounds.
Economic Impact
- In 2024, India exported goods and services worth $752 million to New Zealand, while imports from New Zealand totaled $791 million.
- Main imports from New Zealand include iron and steel, aluminium, and various agricultural products, while exports comprise medicines and textiles.
Strategic Importance
- New Zealand Prime Minister Christopher Luxon highlighted the importance of India for New Zealand's prosperity and security.
- People-to-people relationships and labor mobility are key components of the proposed FTA.
