The rate of duty on New Zealand wine exports to India is set to be reduced by up to 83% over the next decade, following the signing this week of a free-trade agreement (FTA) between the two nations.
The deal will see tariffs on wine from New Zealand fall from 150% to either 50% or 25%, depending on their value. The FTA includes a most-favoured-nation clause, meaning New Zealand wine will automatically receive the same tariff treatment if India grants another country lower wine tariffs under a future FTA.
Trade organisation New Zealand Winegrowers said wine exports to India have historically been “modest” and the market remains “untapped”, but in the ‘last year’ (the exact dates of which were unspecified) grew by 48% to “just under” NZD438,000 (US$248,989).
“We thank ministers and officials for their work to secure improved access to a market with considerable long-term potential”, said New Zealand Winegrowers CEO Anishka Jelicich, who took up the top job in July. “By working to bring the FTA into force quickly, the government has ensured that New Zealand will also benefit from the preferential tariff rates that have been negotiated under the EU India FTA.
“Those tariff reductions are more substantial and would not have been available to us if the EU deal had entered into force first.”
An FTA between the UK and India, which was first announced in May last year, came into effect in July and resulted in the duty rate of 150% on the likes of scotch whisky halved to 75%. In 2036, the rate will be cut further, to 40%.
