Our meat, dairy, trees and seafood now have greater access to the massive Indian market, with the Indian economy forecast to grow to $US7 trillion ($NZ12t) and a middle class expected to number more than 700 million, by 2030.
This is a once-in-a-generation step forward for New Zealand.
The FTA will deliver significant gains for exporters, cutting or eliminating tariffs on 95% of our exports.
That means better returns for our primary producers and the people and businesses associated with them across the Clutha District.
From day one, more than half of New Zealand exports to India will be duty-free, rising to 82% when fully implemented — creating growth and jobs at home.
Tariffs on sheep meat, wool, coal and many other products will be removed on implementation.
Forestry — a major export to India — will benefit from immediate tariff elimination on over 95% of exports, with tariffs on almost all other forestry trade interests phased out over five to seven years.
Horticulture benefits include a 50% tariff cut for apples on a large quota, almost double recent exports and tariff elimination over time for cherries, avocados, blueberries and persimmons.
For food and dairy, bulk infant formula and high-value dairy preparations gain duty-free access over seven years.
Wine tariffs fall dramatically, from 150% to as low as 25% over time.
When this government came to power, we set a goal of doubling the value of New Zealand’s exports within a decade
This FTA and others we’ve secured, are major planks in achieving our goals.
These agreements improve the value of our produce.
In 2008, when we signed the China FTA, trade with that country was worth $2 billion. It is now sitting at $18b.
We have similar potential for growth with India.
We rely on trade.
Our food and fibre sectors create one in every four jobs in New Zealand and the revenue from these exports pay for much of what our country needs — schools, roads, police, hospitals and everything else.
I’m incredibly proud of the work of our government to get this FTA in place and am excited for the opportunities it will bring to people all over the Clutha district, who work so hard producing for the world.
Finally this week, I’d like to acknowledge the Otago and Southland Ballance Farm Environment Awards winners, who happen to farm just a few minutes’ drive from each other.
Nicole and Luke Kane from Tapanui have been named Otago Regional Supreme winners, while Merino Downs farmers Tony and Michelle Roberts, alongside Kate Roberts and Mark Lieshout of Top Deck Trading, won the Southland Regional Supreme title.
Well-deserved recognition — congratulations!
