New Delhi, 27 April. India and New Zealand signed a historic free trade agreement (FTA) on Monday. Under this, 100 percent Indian exports to New Zealand will get tariff exemption. At the same time, the tariff on 95 percent of the goods coming to India from New Zealand has been exempted or the tariff has been reduced. The agreement was signed in the presence of Commerce Minister Piyush Goyal and his New Zealand counterpart Todd McClay.

This free trade agreement, which started a year ago on March 16, was completed in a record nine months and has established a new chapter in the economic relations between the two countries. Under this agreement, India will get immediate 100 percent duty-free access to all tariff products.

This is lower than the 10 per cent duty currently imposed by New Zealand on about 450 tariffed products exported from India, including textile and apparel products, leather and headwear, porcelain, carpets and vehicles and vehicle parts.

There is also a provision in this free trade agreement that New Zealand will invest 20 billion dollars in India in the next 15 years. This is similar to the investment ‘commitment’ of $100 billion made by the European Free Trade Association (EU) in the free trade agreement signed with India.

Furthermore, this FTA includes several provisions to the movement of working professionals and students. New Zealand has signed agreements on student movement and post-study work visas for the first time with any country. Under this, Indian students can work up to 20 hours per week with a work visa after extensive study while studying in New Zealand.

The FTA will also open up high-paying employment opportunities for Indian professionals. Under the agreement, skilled Indian professionals will be given temporary employment visas, under which professionals will be able to stay and work in New Zealand for three years. However, this quota has been set at 5,000 visas.

Under the Working Holiday Visa program included in the agreement, up to 1,000 young Indians per year can enter New Zealand multiple times for a 12-month period. India has also managed to keep many items including all dairy products like milk, cream, whey, curd and cheese as well as agricultural products out of the free trade agreement (FTA).