Piyush Goyal says India will never open its dairy sector as it signs an FTA with New Zealand, ensuring farmer and MSME protections remain intact.
Commerce & Industry Minister Piyush Goyal has stated that India will never give up its dairy sector and has guaranteed its protection in the India-New Zealand free trade agreement (FTA) signed on Monday.
All of our sensitivities have been safeguarded, even farmers’ interest in rice, wheat, dairy, soy, and other agricultural items, to which we have denied access. New Zealand offers great prospects for inventors and startups, and we have been mindful of safeguarding our MSMEs. “It is a win-win situation,” stated Piyush Goyal, Minister of Commerce and Industry, during a press conference on Monday.
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In response to a question concerning the side letter on “consultations related to dairy sector in review of FTA,” the Minister stated that it was intended to address New Zealand’s concerns that, should India ever grant dairy concessions to a nation with an economy similar to New Zealand’s, it should also be given the chance to discuss comparable benefits.
“Dairy will never be opened up in India, therefore that worry is unfounded. And it’s just a consultation,” Goyal added.
Todd McClay, the trade minister for New Zealand, stated that the deal on dairy includes a pledge to establish a special fast-track mechanism to enable the duty-free supply of New Zealand products to India for additional manufacturing and export operations.
Duty-free entrance
In a statement, McClay stated, “New Zealand exporters will benefit from duty-free access for dairy and other food ingredients for re-export through the FTA, opening the door to greater collaboration and processing, and to India’s growing number of FTA partners through a dedicated fast-track mechanism.”
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The New Zealand Minister also mentioned that over a seven-year period, India will offer duty-free access for bulk infant formula and other high-value dairy preparations, as well as a 50% tariff reduction for high-value milk albumins within a NZ-specific quota equivalent to current export volumes.
Thirty percent of Delhi’s tariff lines—which include dairy products like milk, cream, whey, yoghurt, and cheese; animal products (apart from sheep meat); vegetable products like onions, chana, peas, corn, and almonds; sugar; artificial honey; and animal, vegetable, or microbial fats and oils—are not included in the reduction commitments.
Additional shielded products include copper and articles (such as cathodes, cartridges, rods, bars, coils, etc.), jewels and jewelry, weapons and ammunition, and aluminum and items.