Trade deal with New Zealand is much needed, Pg12

Key Highlights:

• India concluded trade negotiations with New Zealand, marking the third trade deal this year.
• The agreement provides duty-free access for all Indian exports to New Zealand.
• New Zealand has committed to facilitating investments of $20 billion into India over the next 15 years.
• The deal offers tariff liberalization on 70% of lines from New Zealand, covering 95% of bilateral trade.

Detailed Insights:

• The India-New Zealand agreement aims to tackle non-tariff barriers through enhanced regulatory cooperation and streamlined measures.
• India has ensured that market access excludes dairy products due to political sensitivities.
• Besides New Zealand, India is also in talks for similar agreements with countries like Israel and Peru.
• The agreement includes commitments in areas such as IT services, education, and financial services, along with pathways for skilled employment.
• India-EFTA trade agreement, which includes Iceland, Liechtenstein, Norway and Switzerland, also took effect on October 1.

Key Concepts Involved:

• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers.
• Tariff Liberalization: The process of reducing or eliminating tariffs on imported goods.
• Non-Tariff Barriers: Trade barriers that restrict imports or exports through measures other than tariffs.