RAS question
The India-New Zealand FTA includes a new visa pathway for Indian professionals. What percentage of New Zealand's current exports would benefit from tariff elimination or reduction?
Correct answer: (D) 95%.
Under the India-New Zealand FTA, 95% of New Zealand's current exports will be tariff-free or will receive sharply reduced tariffs.
Explanation
The New Zealand Ministry of Foreign Affairs and Trade overview of the FTA gives 95% as a key outcome: most of New Zealand's current exports will either become tariff-free or face sharply reduced tariffs. That figure is the scale of tariff benefit for New Zealand's existing export basket, not a general estimate of bilateral trade gains. The agreement also has a mobility element for India: a Temporary Employment Entry Visa pathway for Indian professionals, and the Government of India factsheet describes that pathway for skilled Indian professionals. The export-tariff coverage number is 95%, making the higher option correct.
Why the other options are wrong
- (A) 75% understates the tariff coverage; the New Zealand Ministry of Foreign Affairs and Trade overview gives 95% of New Zealand's current exports as tariff-free or benefiting from sharply reduced tariffs.
- (B) 85% is too low because the FTA outcome covers 95% of New Zealand's current exports.
- (C) 90% is close but still below the official figure of 95%.
Concept
FTA outcomes under international trade policy include tariff liberalisation and market-access commitments. Such figures recur in RAS economy questions because they connect current trade agreements with export competitiveness and services mobility.