"India-New Zealand FTA ratified, to come into effect on October 20"
Free Trade Agreement (FTA)
treaty removing or sharply cutting tariffs on most goods traded between member countries
Preferential Trade Agreement (PTA)
agreement lowering tariffs only on a limited, specified list of products
India's trade policy has leaned heavily on Free Trade Agreements (FTAs) since the early 2000s, alongside its continuing commitment to the multilateral trading system of the World Trade Organisation (WTO). An FTA is a treaty between two or more countries that removes or sharply cuts tariffs (import taxes) and other barriers on most goods traded between them, going further than a Preferential Trade Agreement (PTA), which lowers tariffs only on a limited list of items. India has earlier signed FTAs with Sri Lanka, the ASEAN bloc, Japan, and South Korea, generally prioritising Asian partners first before widening the circle to Australia, the UAE, and now New Zealand.
India's caution on agriculture in trade talks traces back to its 2019 decision to stay out of the Regional Comprehensive Economic Partnership (RCEP), a mega trade bloc covering ASEAN, China, Japan, South Korea, Australia and New Zealand. A key reason for that exit was the fear that cheap dairy imports from Australia and New Zealand, and manufactured goods from China, would hurt Indian farmers and small industry. The India-New Zealand FTA carries forward the same defensive instinct: dairy and several sensitive farm products remain outside tariff concessions even as India opens up to New Zealand's other exports.
The agreement also sits inside a wider upgrade of India-New Zealand ties, built on shared Commonwealth links and parliamentary traditions. It follows India's Act East Policy and its broader Indo-Pacific outreach, under which New Zealand, a Five Eyes member with growing Pacific interests, is increasingly viewed as a relevant partner as regional geopolitics shift.
Under the deal, India will remove import levies on all its goods exported to New Zealand, while New Zealand will allow about 95% of its own exports to India in tariff-free or sharply reduced categories. India has kept dairy, onions, almonds, chickpeas, peas, artificial honey and sugar outside any tariff concession, protecting farmers and small producers from import competition in these categories.
New Zealand has committed $20 billion in foreign direct investment (FDI) into India as part of the package. Potential investment areas include agri-technology, kiwi farming, apiculture (bee-keeping), and engineering and manufacturing goods, where New Zealand holds technological strengths. …
What are the main areas of reform if the World Trade Organisation (WTO) has to survive in the present context of 'Trade War', especially keeping in mind the interest of India?
Consider the following statements about the India-New Zealand Free Trade Agreement (FTA):
1.It eliminates import tariffs on all Indian goods exported to New Zealand.
2.It grants New Zealand tariff concessions on dairy products exported to India.
3.New Zealand has committed $20 billion in foreign direct investment into India under the agreement.
How many of the above statements are correct?
With reference to India's decision to stay out of the Regional Comprehensive Economic Partnership (RCEP), consider the following statements:
1.RCEP includes ASEAN members along with China, Japan, South Korea, Australia and New Zealand.
2.India's 2019 withdrawal was partly driven by concerns over import surges in dairy and manufactured goods.
3.India is currently a member of RCEP but was granted a longer tariff phase-out period.
Which of the statements given above is/are correct?
As part of the India-New Zealand FTA, India kept which of the following outside tariff concessions to protect domestic producers?
1.Dairy products
2.Onions
3.Almonds
4.Engineering goods
Select the correct answer using the code below:
Match List-I (India's bilateral/regional Free Trade Agreements) with List-II (year signed) and select the correct answer using the code given below:
List-I:
A.India-Sri Lanka FTA
B.India-ASEAN FTA
C.India-Korea CEPA
D.India-Japan CEPA
List-II:
1.2009
2.1998
3.2010
4.2011
Which one of the following best distinguishes a 'Free Trade Agreement (FTA)' from a 'Preferential Trade Agreement (PTA)'?
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