India-New Zealand FTA: Reviving Talks After a Decade

India and New Zealand have commenced their second round of negotiations for a much-anticipated free trade agreement, aimed at enhancing bilateral commerce and investments. The ongoing discussions, expected to conclude on July 25, resume a dialogue halted in 2015 after a ten-year hiatus.

A significant hurdle in these renewed talks is the considerable difference in tariff structures between the two nations. While New Zealand's average import tariff is a mere 2.3 percent, India's stands at about 17 percent, posing a challenge for India to make substantial reductions, according to the Global Trade Research Initiative (GTRI).

Previously, New Zealand sought greater access to India's protected dairy market, which could stir debates as India looks to safeguard a sector vital to its farmers. The bilateral trade in goods and services between the two countries covers an array of sectors, highlighting the economic interdependence and shared interests in pursuing a fair trade agreement.

(With inputs from agencies.)