WELLINGTON: New Zealand’s parliament passed legislation enabling a free-trade agreement with India, clearing the way for a deal Prime Minister Christopher Luxon (pic) has described as "once-in-a-generation.”
Lawmakers passed the bill 93-29 on Wednesday (Sept 16) Trade Minister Todd McClay said in Wellington. The FTA was backed by the ruling National Party and the main opposition Labour Party, securing a clear majority in parliament.
"The India FTA opens the door for Kiwi exporters to one of the world’s largest and fastest-growing economies,” McClay said.
"Parliament today overwhelmingly backed the long-term benefits the agreement will deliver for all New Zealanders.”
India’s commerce secretary said Tuesday that he expects the deal, which was concluded in December and signed in April, to become operational in the second half of October. Luxon and Indian Prime Minister Narendra Modi have said they expect the pact to help double two-way trade by 2030.
India is New Zealand’s ninth largest export market, with two-way trade totalling almost NZ$4 billion (US$2.3 billion) in the 12 months through June.
The agreement eliminates tariffs on a range of New Zealand exports, including wine, kiwifruit and apples, with 57% of shipments becoming duty-free immediately. Once fully implemented, tariffs will be eliminated or significantly reduced on 95% of exports.
The deal also eliminates levies on Indian exports and eases mobility rules for students and workers from the South Asian nation. - Bloomberg
