The India-New Zealand trade deal, explained

Transcript

For 10 years, India and New Zealand couldn't agree on a trade deal. Then they closed one in 9 months. It came into force on October the 20th. So what's in it, and is it actually good for India? First, some history. Indian soldiers fought beside New Zealand as a Gallipoli. In 1915, diplomatic ties began in 1952. Today, about 6% of New Zealand's people are of Indian origin. Yet trade is tiny. Around $2.4 billion a year. This deal wants to double that within 5 years. New Zealand has its own reason. About 30% of its exports go to China, and it wants another big customer. So what does India get? Three things. One, zero duty on everything it sells New Zealand. Textiles, leather, and engineering goods paid up to 10% before. Two, services and people. 118 service sectors open up. Up to 5,000 Indian professionals can work there at a time, and students get work rights. Three, New Zealand has committed to promote up to $20 billion of investment in India over 15 years. In return, India opens 70% of its tariff lines, covering about 95% of trade, some at once, the rest over 3 to 10 years. Cheaper wool, timber, and coaking coal. Limited, quota-based cuts on apples and kiwi fruit. But India drew one red line. Dairy. New Zealand is one of the world's biggest dairy exporters. India has millions of small dairy farmers. So milk, cheese, and butter get no tariff cuts at all. Critics aren't convinced. In India, they say the gain is modest, since New Zealand's averaged tariff was already about 2%. Farmer unions oppose it anyway. In New Zealand, dairy exporters feel left out, and the New Zealand First Party opposed the deal over immigration. The government calls it a step towards Vixit Barat 2047. More trade deals with rich economies, more exports, more jobs. For take, a good deal for India, but a small one for now. India gave up little, protected its farmers, and opened doors for its workers. But trade is modest, and $20 billion is still a promise. If trade really doubles and the money shows up, this small deal will matter far more than it looks. Follow Curio for more stories like this.

Transcribed automatically from the video, so small errors are possible.