"India-New Zealand Free Trade Agreement to Take Effect Soon"
Free Trade Agreement (FTA)
a pact between countries to reduce or remove tariffs on a negotiated list of goods and services.
Most Favoured Nation (MFN)
WTO principle requiring equal trade treatment to all member countries, unless an FTA exception applies.
Free Trade Agreements (FTAs) are bilateral or regional arrangements under which countries reduce or eliminate tariffs and non-tariff barriers on a negotiated list of goods and services, going beyond the Most Favoured Nation obligation owed to all World Trade Organization members under Article I of the GATT. India's approach to FTAs has evolved considerably over the past decade. Concerns over import surges in agriculture and dairy led India to withdraw from the Regional Comprehensive Economic Partnership (RCEP) in 2019, even as most of its Indo-Pacific neighbours joined. Since then, India has pursued a strategy of signing FTAs on its own terms with individual partners rather than joining large multilateral blocs. The India-UAE CEPA, the India-Australia ECTA, and the India-EFTA Trade and Economic Partnership Agreement (TEPA) are earlier examples of this approach.
New Zealand, a small and highly export-dependent economy, has long pursued an aggressive trade liberalisation strategy of its own. It was among the first developed countries to sign an FTA with China in 2008, and it remains a founding member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the successor to the Trans-Pacific Partnership that groups Pacific Rim economies while excluding China. This history of proactive deal-making made New Zealand a natural, low-risk partner for India to test a fuller opening of trade, compared with the far more difficult negotiations under way with the European Union, the United Kingdom, or the United States. The India-New Zealand FTA, concluded in April 2025 after unusually fast negotiations, is set to come into force on October 20, 2026.
The India-New Zealand FTA covers goods, services, and investment commitments, but its most notable feature is a historic concession: India has secured duty-free access for 100% of its exports to New Zealand. This covers labour-intensive goods such as textiles and pearls and semi-precious stones, as well as capital-intensive goods such as pharmaceuticals, nuclear reactor parts, vehicle components, mineral fuels, electrical machinery, and iron and steel.
On the defensive side, India kept close to 30% of its import tariff lines outside the scope of concessions, most notably excluding the dairy sector entirely, despite this being a central demand of New Zealand's negotiators. …
With reference to the 'Trans-Pacific Partnership', consider the following statements:
1.It is an agreement among all the Pacific Rim countries except China and Russia.
2.It is a strategic alliance for the purpose of maritime security only.
Which of the statements given above is/are correct?
Consider the following statements regarding the India-New Zealand Free Trade Agreement (FTA):
1.India has secured duty-free access for 100% of its exports to New Zealand.
2.Dairy products have been fully included under the tariff concessions granted to New Zealand.
Which of the statements given above is/are correct?
With reference to India's trade policy, consider the following statements:
1.India withdrew from the Regional Comprehensive Economic Partnership (RCEP) in 2019.
2.Concerns over the dairy and agriculture sector were a key reason for India's withdrawal from RCEP.
Which of the statements given above is/are correct?
Match List-I (Trade Agreement/Event) with List-II (Year) and select the correct answer using the codes given below:
List-I:
A.India-New Zealand FTA
B.New Zealand-China FTA
C.India's withdrawal from RCEP
D.India-EFTA TEPA
List-II:
1.2008
2.2019
3.2025
4.2024
Which of the following statements about the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is correct?
Consider the following statements regarding foreign investment commitments under India's recent trade agreements:
1.Under the India-EFTA Trade and Economic Partnership Agreement, EFTA nations committed $100 billion of investment in India over 15 years.
2.Under the India-New Zealand FTA, New Zealand committed $20 billion of investment in India over 15 years.
Which of the statements given above is/are correct?
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