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India-New Zealand Trade Deal Set to Begin Next Month
India and New Zealand have made a trade agreement that is expected to start in October.
It would remove tariffs on all goods India exports to New Zealand.
New Zealand has also promised to invest $20 billion in India over 15 years.
India and China may discuss trade during a BRICS meeting in September.
India is also trying to complete a larger trade agreement with Chile.
India and Chile disagree about access to agricultural markets and supplies of critical minerals.
India is working with Mercosur, a South American trade group, to expand an existing trade deal.
The rules for that expansion may be finalized in October.
Argentina could make a separate trade deal with India if the Mercosur talks take too long.
The India-New Zealand Free Trade Agreement is expected to take effect in October on a mutually agreed date.
The agreement will eliminate tariffs on 100% of Indian exports and includes New Zealand’s commitment to invest $20 billion in India over 15 years.
India and China are expected to hold a trade-minister meeting on the sidelines of the BRICS Summit on September 12-13.
India and Chile are working to conclude a Comprehensive Economic Partnership Agreement but remain divided over market access and critical-minerals commitments.
Terms of Reference for expanding the India-Mercosur trade agreement could be finalized in October, while Argentina may pursue a separate arrangement if talks take longer.
- Who
- India, New Zealand, China, Chile, Mercosur, and Argentina, along with their trade officials.
- What
- India is preparing to operationalize its FTA with New Zealand while advancing trade negotiations with China, Chile, and Mercosur.
- Where
- The agreements and negotiations involve India, New Zealand, China, Chile, Argentina, Brazil, and the Mercosur bloc in South America.
- When
- The India-New Zealand FTA is expected to begin in October; India-China talks are expected on September 12-13, and Mercosur terms may be finalized in October.
- Why
- The agreements aim to expand market access, remove tariffs, attract investment, and address trade in agricultural products and critical minerals.
India’s Priorities
Chile’s Position
Market access and critical minerals
India’s Priorities
India wants greater access for its exports and a commitment from Chile on the supply of critical minerals.
Chile’s Position
Chile is seeking access for agricultural and horticultural products, while saying its local laws prevent it from guaranteeing critical-mineral supplies.
Key facts
- India-New Zealand FTA
- Expected to come into force in October on a mutually agreed date.
- Indian exports
- Tariffs would be eliminated on 100% of Indian exports to New Zealand.
- New Zealand investment commitment
- $20 billion in India over the next 15 years.
- India-China meeting
- Trade ministers are expected to meet during the BRICS Summit on September 12-13.
- India-Chile negotiations
- Four formal rounds have been held on the proposed Comprehensive Economic Partnership Agreement.
- Critical minerals
- India seeks a Chilean supply commitment, while Chile says local laws prevent such commitments.
- India-Mercosur trade
- The existing preferential agreement covers 450 Indian tariff lines and 452 Mercosur lines.
Quotes
An unidentified official
An official who provided information on the India-New Zealand trade agreement
“The agreement will come into force in October on a mutually agreed date”
financialexpress.com
Sources
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