No Duty Concessions for New Zealand on Dairy, Vegetables, Sugar, Copper, Aluminium Items

To protect the interest of farmers and MSMEs, India has not extended any import duty concessions to New Zealand on several sensitive sectors, including dairy, animal products, vegetables, sugar, copper and aluminium, under the trade pact to be signed in the next three months.

The two countries announced the conclusion of negotiations for the free trade agreement (FTA) on Monday. The FTA is likely to be signed in the next three months and implemented next year.

Under the agreement, the products that are kept in the exclusion list are: Dairy (milk, cream, whey, yoghurt, cheese etc.), animal products (other than sheep meat), vegetable products (onions, chana, peas, corn, almonds etc.), sugar, artificial honey, Animal, vegetable or microbial fats and oils.

The list also includes Arms and Ammunition, Gems and Jewellery, Copper and Articles (Cathodes, Cartridges, Rods, Bars, Coils ), Aluminium and articles thereof (Ingots, billets, wire bars).

Further as per the agreement, India has given greater market access in certain agri goods but with quotas and minimum import price (MIP).

These goods include Manuka honey, apples, kiwi fruit and Albumins, including Milk Albumin (used in medicines and making whey protein).

Currently 66% duty is there for Manuka honey, a niche product of New Zealand. India imported 14.2 tonnes ($0.3 million) of the commodity from New Zealand and 356.8 tonnes ($1.9 million) from the world.

Under the pact, India has given duty concessions for up to 200 tonnes per annum with a MIP of $20/kg. A 75 per cent tariff reduction will be extended over a period of five years.

Beyond this quota, the MIP will be increased to $30/kg.

On apples, the current applicable duty is 50%; and the current imports from New Zealand are 31,392.6 tonnes ($32.4 million) and from the world 519,651.8 tonnes ($424.6 million).

India will give duty concessions for 32,500 tonnes of apples in the first year of the agreement. The quota will be increased to 45,000 tonnes in the sixth year at 25% duty with MIP of $1.25/kg.

And beyond these quotas, a 50% duty will be imposed.

Similarly, for kiwi fruit, the current applicable duty is 33%. India's imports from New Zealand stood at 5,840 tonnes ($16.9 million) and from the world 49,167 tonnes ($61.4 million).

The TRQ (tariff rate quota) will be given on 6,250 tonnes (first year), which will be increased to 15,000 tonnes in the sixth year at zero duty with MIP of $1.80/kg.

Beyond this quota, a 50% margin of preference will come into force with MIP of $2.50/kg.

For albumins including milk albumin, the current duty is 22% and the current imports from New Zealand stood at 3,429.7 MT ($28.9 million) and from world 18,801.4 MT ($175.3 million).

Under TRQ, the quota will be 1,000 MT in the first year of the agreement, which will be increased to 3000 MT in the fifth year.

Beyond that, the usual duty will come into force.