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India-New Zealand free trade agreement comes into force
बातमीत का?
Apples, kiwifruit and Manuka honey at lower duty: the tariff rate quota logic behind the India-NZ FTA
India-NZ FTA enters into force on 20 October; tariff rate quotas notified for apples, kiwifruit and Manuka honey.
Why it matters: factual, Prelims-type
What you need to know
2 मिनिटे
The India-New Zealand free trade agreement comes into force on 20 October 2026, Vijayadashami.
The Commerce Ministry has notified tariff rate quotas under which specified quantities of apples, kiwifruit and Manuka honey can enter India at concessional duty.
The agreement is expected to open new opportunities for Indian exporters.
स्रोत: Topper IAS editorial (PIB / The Hindu / Indian Express)
महत्त्वाची तथ्ये
Remember these
- India-New Zealand FTA came into force on 20 October 2026 (Vijayadashami).
- The Commerce Ministry notified tariff rate quotas (TRQs) for apples, kiwifruit and Manuka honey.
- A TRQ allows a fixed quantity of imports at concessional duty; imports beyond it attract the normal higher duty.
- The agreement is expected to open new opportunities for Indian exporters.
पूर्व · मुख्य
How the exam will ask it
पूर्व
- A tariff rate quota allows a specified quantity of a product to be imported at a lower or zero duty, while imports above that quantity attract the normal duty.
- Under the India-New Zealand FTA, TRQs have been notified by the Commerce Ministry for apples, kiwifruit and Manuka honey.
- A TRQ does not ban imports beyond the quota; it only changes the rate of duty applicable.
मुख्य
GS-II/III: Bilateral trade agreements and the external sector. Issue: India is deepening FTAs while protecting sensitive farm sectors; provision: TRQs give calibrated, quantity-limited concessional access for items like apples, kiwifruit and Manuka honey. Implication: new export opportunities for Indian exporters against pressure on domestic apple growers; way forward: monitor quota utilisation, safeguard sensitive segments and help exporters use the concessions.
Quick recall
Answer before you reveal
In the context of trade agreements, a tariff rate quota (TRQ) refers to an arrangement in which:
- Imports of a product are permitted only against export obligations fulfilled earlier by the importer
- Imports of all goods are capped at a fixed value and anything beyond it is banned
- Exports are taxed at progressively higher rates as the volume shipped rises
- A fixed quantity of imports is allowed at a lower or zero duty, while imports beyond it attract the normal higher duty
उत्तर पहा
उत्तर: D — The correct answer is A fixed quantity of imports is allowed at a lower or zero duty, while imports beyond it attract the normal higher duty. A tariff rate quota gives concessional access up to a specified quantity, as India has done for apples, kiwifruit and Manuka honey under the New Zealand pact.
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