India Grants New Zealand's Apples Duty Concessions

New Zealand becomes the first country to receive duty concessions for apples under India's free trade agreement framework. India imposes a 50% import duty on apples but has agreed to a lower rate under set quotas to protect domestic farmers. This move is significant as the US seeks similar terms.

In a landmark agreement, New Zealand has become the first nation to receive duty concessions from India for apple imports under a free trade agreement. The current import duty on apples in India stands at 50 percent; however, under the new agreement, New Zealand apples will receive preferential treatment based on a quota system and a minimum import price to protect local farmers.

The agreement allows for New Zealand to export 32,500 metric tonnes (MT) of apples to India in the first year under reduced duties, with the quota increasing to 45,000 MT in the sixth year at a reduced duty of 25 percent. Outside these quotas, the existing 50 percent import duty remains applicable.

This agreement is significant as it marks New Zealand as the first country to gain such preferential access for apples under any Indian FTA. Furthermore, the accord comes amid the United States pressing for similar duty concessions for its apples in ongoing trade negotiations with India.

(With inputs from agencies.)