NZ trade pact: Important to allay concerns of stakeholders

THE conclusion of negotiations on a Free Trade Agreement (FTA) with New Zealand sets the course for doubling bilateral trade in the next five years. To the Narendra Modi government's credit, India's dairy sector remains protected from duty concessions. As with the trade pacts inked in the past, the tough stance resonates with the template on what is non-negotiable for New Delhi. How it plays out in the prolonged trade talks with the US is the real test. One of the concessions Washington is seeking is access to India's politically and economically sensitive farm and dairy sectors. The FTA with New Zealand removes numerous caps on Indian students. Jobs in skilled occupations will also be offered with 5,000 three-year visas annually. A final deal though would need varying degrees of resolve and accommodation by both sides in the face of opposition to some provisions.

New Zealand's Prime Minister has welcomed the deal, but the Foreign Minister, his coalition partner, has vowed to oppose it. It gives too much away, he said, especially on immigration and dairy, pointing out that this would be the first trade deal to exclude his country's major dairy products. For India's apple growers, slashing by half the duty on imports from New Zealand is a worrying development that could open the door for more such concessions to other countries. So far, India maintains 50 per cent duty on apple imports from all the supplying countries. The annual applicable quota for apple import from New Zealand would also grow from the sixth year onwards. Allaying concerns of the stakeholders must be given priority.

A trade pact signifies enhanced trust and cooperation, but the true measure of its success hinges on resolution through continuous dialogue. That's the real deal.