Which of the following has been kept out of tariff concessions under the India–New Zealand FTA to protect Indian farmers?
- A.Dairy products
- B.Wooden logs
- C.Coking coal
- D.Metal scrap
Show answer
Correct answer: A. Dairy products
Explanation
The correct answer is Dairy products. To safeguard farmers, India has excluded sensitive products from tariff concessions: dairy, animal meat except sheep meat, key agricultural commodities, sugar and edible oils. This matters because New Zealand is one of the world's largest dairy exporters, and dairy has long been India's most sensitive issue in trade talks.
The other three options are the opposite case. Wooden logs, coking coal and metal scrap are inputs that Indian manufacturers will now be able to import from New Zealand free of duty, which lowers their costs and helps them compete in global markets. For New Zealand's apples, kiwifruit and Manuka honey, the agreement offers only limited access through tariff rate quotas with a minimum import price and seasonal windows, backed by an Agriculture Productivity Partnership to help Indian growers.