Key insights
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1
Strategic trade diversification amid global protectionism: The agreement exemplifies how middle-sized economies are seeking bilateral trade expansion to counterbalance risks from major powers' protectionist policies, such as those of the US.
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2
Balancing economic openness with domestic sensitivities: Both India and New Zealand excluded sensitive agricultural items from the deal to mitigate domestic political backlash while still pursuing broader market access.
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Investment and skilled labor mobility as trade facilitators: Beyond tariff reductions, the deal emphasizes investment flows and workforce mobility, signaling a comprehensive approach to deepen economic integration.
Takeaways
The India-New Zealand free trade agreement is set to expand market access and investment while navigating political sensitivities, fitting into a global trend of diversification away from unilateral trade dependencies.
Topics
Business & Markets Economy World & Politics Policy & Regulation Trade & Tariffs