New Zealand – The New Zealand apple and pear sector is delighted with today’s announcement of a Free Trade Agreement (FTA) with India, which includes a world-first reduction on apple and pear access to India.
The milestone achievement includes a quota for New Zealand apples to receive a 50 percent reduction on tariff (from 50 percent to 25 percent), during the window from 1 April to 31 August, focusing access on counter seasonal supply to India’s own apple industry. The reasonable quota allows for significant growth over the next six years.
Pear access into India also received a 50 percent to reduction on tariffs, with no quota limitations.
The deal is linked to a cooperation plan and further collaboration between the New Zealand and Indian apple industries, which will see technical experts continue New Zealand’s longstanding history of supporting Indian growers with productivity and profitability improvements.
The agreement holds unprecedented opportunities for New Zealand’s premium apple and pears in one of the world’s fastest-growing markets, says Danielle Adsett, NZAPI Acting General Manager.
“Christmas has come early for our growers with this announcement. India is currently the fifth-largest economy globally and this agreement holds untold potential for New Zealand’s pipfruit sector. It will play a pivotal role in achieving NZAPI’s ambition of becoming a $2 billion export sector by 2035.
“While the speed and efficiency of this FTA has been remarkable, in many ways it has also been a long time for our industry. Collaboration between Indian and New Zealand apple growers has been ongoing since the 1990s and the first World Bank Apple Industry Development Project.
“These committed relationships have been critical in securing a positive outcome for apples and pears in the India-New Zealand FTA. The result is a testament to the good will shared by growers in each nation. India is widely acknowledged as a long-term partner by our industry – from importer to exporter, researcher to researcher, and grower to grower. Our two countries share many common values and complement each other across the value chain.”
Premium New Zealand apples will now enjoy increased access to India, opening doors to a market of 1.4 billion people and a rapidly expanding middle class. India, already the world’s largest population, is projected to become the third-largest economy by 2030, offering immense potential for exporters.
Adsett says, the entire New Zealand apple and pear industry is grateful to the New Zealand Government, The New Zealand High Commission in Delhi, the Ministry of Foreign Affairs and Trade (MFAT) and the Ministry for Primary Industries (MPI) for their tireless efforts in securing this agreement.
“Their collaboration with industry has been second to none and this landmark deal will only strengthen New Zealand’s position as a world-leading producer of apples and pears.”
Details of the historic deal include:
APPLES:
- 50% tariff reduction to a 25% tariff
- Quota starting at 32,500MT in year one, growing to 45,000MT year six and onwards
- Quota window of 1 April to 31 August
- Minimum Price – CIF $1.25 USD per kg
Outside of these conditions, New Zealand growers can export at the current 50% tariff
PEARS
- 50% tariff reduction to a 16.5% tariff phased in over 10 years in equal cuts
- No quota and no export window