Wellington: New Zealand Parliament has approved legislation to implement the country’s free trade agreement with India, clearing a major legislative step towards putting the deal into effect.
The legislation passed by 93 votes to 29 on Wednesday, with support from the opposition Labour Party. The agreement is designed to expand trade between the two countries by reducing or removing tariffs on a large share of goods and improving access to services and investment.
The agreement is not yet in force. Both countries must complete their respective procedures before it can take effect.
New Zealand Trade and Investment Minister Todd McClay said the parliamentary vote showed strong support for the agreement and its expected economic benefits.
Under the agreement, 57 per cent of New Zealand’s current exports to India are expected to become completely duty free from the first day the agreement enters into force. Once the agreement is fully implemented, tariffs will be eliminated or significantly reduced on about 95 per cent of New Zealand’s current exports to India.
The 95 per cent figure does not mean that all those exports will immediately become tariff free. New Zealand says tariffs will eventually be completely eliminated on about 82 per cent of its exports, while another 13 per cent will receive significant tariff reductions.
More than 95 per cent of New Zealand’s forestry exports to India will be able to enter tariff free immediately once the agreement takes effect. Tariffs on sheep meat, wool, coal and many other products will also be removed immediately.
Tariffs on key fish and seafood exports will be phased out over seven years. The agreement also provides new quota access for New Zealand kiwifruit and apples. New Zealand says its kiwifr