Free Trade Agreement With India to Boost Rural Exports – McClay

A free trade agreement (FTA) between New Zealand and India is expected to be finalised before the next general election, Trade Minister Todd McClay has confirmed, RNZ reported.

According to a report by RNZ, McClay said the second round of negotiations wrapped up with India expressing its intention to move swiftly towards a deal. India is currently New Zealand’s 25th-largest goods export market, worth $718 million annually, largely made up of forestry and agricultural products.

The minister said the agreement could open new doors for rural exporters, particularly in the meat sector.

“You want to sell New Zealand lamb into India, you face a 30 percent tariff. The Australian tariff on their lamb is zero, so they have a 30 percent advantage over us,” McClay said, quoted RNZ.

“New Zealand lamb is much better, so we’re trying to get that tariff rate down to the same as Australia, so people in India who eat meat can have the best lamb in the world from New Zealand,” RNZ reported.

RNZ reported that McClay recently returned from the United States, where he discussed the 15 per cent tariffs imposed on all imports into the country. He said both countries agreed to hold monthly discussions on the impact of those tariffs on New Zealand exporters.