Cheers to Trade: India and New Zealand Uncork New Wine Agreement

The free trade agreement between India and New Zealand includes provisions for significant tariff reductions on wine imports from New Zealand over a decade. While current import duties on New Zealand wine stand at 150 per cent, they will gradually decrease, providing opportunities for expanded market access.

The recently signed free trade agreement between India and New Zealand marks a significant advancement in bilateral trade, particularly in the wine sector. The pact allows duty-free exports of wines and spirits from India to New Zealand, while wines from New Zealand will enter the Indian market with reduced tariffs over the next ten years.

Currently facing a steep 150 per cent import duty, New Zealand wines will gradually benefit from a 66-83 per cent reduction. This concession aligns with similar trade agreements India has pursued within the region, such as its pact with Australia from December 2022.

While India maintains zero concessions on wines priced below USD 5, import duties for higher-priced bottles will see substantial reductions over the decade, potentially spurring a competitive edge for New Zealand wines in the Indian market.

(With inputs from agencies.)