Conclusion of India-New Zealand FTA negotiations welcomed by red meat sector

The conclusion of negotiations on the India-New Zealand Free Trade Agreement (FTA) brings New Zealand’s red meat sector one step closer to unlocking new opportunities from a market with considerable long-term potential.

“This is a strategically significant milestone for New Zealand’s red meat sector,” says Nathan Guy, independent chair of the Meat Industry Association.

“An FTA with India will unlock a promising market that has been constrained due to the 30 per cent tariff currently on New Zealand sheepmeat.”

“In a global environment marked by rising protectionism, uncertainty and volatility, this agreement provides a foundation for the New Zealand red meat sector to realise opportunities in a market that has great prospects in the future.”

Beef + Lamb New Zealand chair Kate Acland says the announcement is positive for New Zealand’s sheep farmers.

“The deal will see the 30 per cent tariff on our main sheepmeat product lines eliminated on entry into force and puts us on a level playing field with Australia, which concluded an FTA with India several years ago.

“Although the impact on farm-gate returns may not be significant in the short-term, this is an important step for future resilience and profitability in the sector.

“This year, India surpassed China as the most populous country in the world. It is projected to become the world’s third-largest economy within five years and its middle class is growing.”

Mr Guy says beyond sheepmeat, India offers market opportunities for New Zealand co-products, including wool, pharmaceuticals and pet food with tariff liberalisation on these products as well.

“It will provide farmers and exporters with an important additional, complementary market option, helping to spread risk and provide greater stability for the sector.”

Acland says the announcement is welcome news for the sector in the lead-up to Christmas.

“The industry congratulates and thanks Prime Minister Rt Hon Christopher Luxon, Minister for Trade and Investment Hon Todd McClay, and officials for their hard work in securing this deal.”