India and New Zealand Revive Free Trade Talks After Decade-Long Hiatus

India and New Zealand recently concluded a five-day round of talks aimed at forging a new Free Trade Agreement to invigorate bilateral trade and investment. This marks the resumption of discussions that stalled in 2015, after ten rounds of negotiations inefficiently addressed key areas like goods, services, and investment.

The revived discussions are crucial as bilateral trade has surpassed USD 1 billion, indicating potential for further growth. According to Global Trade Research Initiative (GTRI), the significant challenge remains the disparity in tariff structures, with New Zealand maintaining much lower average import tariffs compared to India.

Key sticking points include New Zealand's demand for greater access to India's dairy market, which India is reluctant to grant, aiming to protect its domestic industry. India's exports to New Zealand primarily consist of textiles, electronics, and agricultural equipment, whereas New Zealand's exports focus on education and tourism services. Both nations aim to finalize the comprehensive free trade agreement within 60 days, hoping to boost bilateral trade significantly within the next decade.

(With inputs from agencies.)