Negotiations for a Comprehensive Free Trade Agreement (FTA) between India and New Zealand are currently impeded by concerns over opening India’s dairy market to New Zealand’s exports.
New Zealand’s Deputy Prime Minister and Foreign Minister, Winston Peters, emphasized the significance of dairy in the trade talks during his recent visit to India. He acknowledged the sensitivities involved, stating that while New Zealand is eager to export its premium dairy products to India, it understands the challenges posed by India’s vast and predominantly small-scale dairy sector.
India’s dairy industry, comprising millions of small farmers and cooperatives, is largely self-sufficient and caters primarily to domestic consumption. The sector is considered sensitive due to its role in rural livelihoods and food security. Indian stakeholders fear that opening the market to New Zealand’s highly efficient dairy exporters could disrupt local production and affect farmers’ incomes.
Despite these challenges, both countries have expressed a commitment to advancing the FTA discussions. Peters highlighted potential areas of cooperation, including sharing New Zealand’s expertise in dairy productivity and breeding techniques to enhance India’s dairy sector. However, he also noted that no specific timeline has been set for resolving the dairy market access issue.
Industry Insight:
The ongoing FTA negotiations underscore the complexities of balancing trade liberalization with domestic sector protections. For Indian dairy stakeholders, the talks highlight the need for strategic planning to safeguard local interests while exploring avenues for international collaboration and grow