Compounding gains: On the India-New Zealand FTA

The New Zealand Free Trade Agreement (मुक्त व्यापार समझौता) builds on seven recent FTAs

The India-New Zealand Free Trade agreement (FTA) signed on Monday might look underwhelming (निराश करना, प्रभावित न करना) when viewed in isolation (अलग से, पृथक रूप में), but is nevertheless (फिर भी, तथापि) significant when looking at what has been happening over the last five to six years. This impression (धारणा, प्रभाव) is because New Zealand’s economy is one-sixteenth the size of India’s, and makes up less than 1% of India’s total trade. Yet, this view ignores the fact that (तथ्य यह है कि) the FTA comes soon after the signing of, or closure of negotiations (वार्ता, बातचीत) on, seven other trade agreements in the past three and a half years or so. It also ignores the larger policy goals that India is trying to achieve through such deals. The COVID-19 pandemic (महामारी) and the U.S. tariff frictions (शुल्क संबंधी विवाद, टैरिफ विवाद) have shown India that it needs to diversify supply chains (आपूर्ति श्रृंखला) on the import and export sides. Weaning off imports from China is a tough task. Yet, any chipping away of the 16% of India’s imports that China accounts for would be welcome (स्वागतयोग्य, अच्छा). Importantly, the strategic (relating to the gaining of overall or long-term advantage; calculated, tactical) need to diversify (to enlarge or vary the range of products or field of operation; branch out, vary, expand, broaden) export destinations (a country or region to which goods are sold and shipped; foreign market), especially while the mercurial (subject to sudden or unpredictable changes of conditions or temperament; volatile, unpredictable, unstable, erratic) Donald Trump is in charge of (having responsibility for or control over; responsible for, overseeing, leading, managing) India’s largest export market (a foreign country or demographic to which domestic goods and services are sold; international market, overseas market), is clear (evident, obvious, apparent, unambiguous) and urgent (pressing, critical, crucial, immediate). The trade deals with Mauritius, the UAE, Australia, the EFTA nations (a member state of the European Free Trade Association (an intergovernmental organization promoting free trade, comprising Iceland, Liechtenstein, Norway, and Switzerland); EFTA member state), the U.K., the EU, Oman, and now New Zealand all provide Indian exporters opportunities that they should take advantage of (to make good use of the opportunities offered by something; exploit, utilize, capitalize on, make the most of). Finally, dismissing (reject, brush off, disregard, ignore) this FTA on the basis of (due to, because of, by reason of, founded on) its size would be unfair (unjust, biased, discriminatory, inequitable) to India’s negotiators (a person who conducts talks to reach an agreement; mediator, diplomat, envoy, representative) who have done well to use India’s comparative (relative, proportional, relational, corresponding) advantage to push through (to get a plan, law, or agreement officially accepted quickly; force through, drive through) key victories.

The first key strength of the FTA for India, and unprecedented (never done or known before; unparalleled, unequalled, unmatched, groundbreaking), is that New Zealand will remove all goods tariffs (a tax levied by a government on physical merchandise being imported or exported) immediately on execution (implementation, enforcement, realization) of the agreement. The second strength is that India managed to avoid providing any concessions (a thing that is granted, especially in response to demands during negotiations; compromise, modification, adjustment, exception) on any of its sensitive sectors (an industry or area of the economy that is vulnerable to foreign competition and typically protected during trade pacts; vulnerable industry, protected sector, crucial economic segment). Key among these exclusions is dairy (an industry or sector dealing with the production, processing, and distribution of milk and milk products; milk industry), something New Zealand had been especially keen (showing a strong and eager desire; eager, enthusiastic, anxious, determined) to include. The third positive is New Zealand’s commitment (an engagement, obligation, or promise to do something; pledge, assurance, vow, obligation) to facilitate (to make easy, ease, make possible, smooth the path of, enable) investments in India worth $20 billion over 15 years. This is similar to the provisions (clause, stipulation, condition, requirement) in the EFTA trade pact (the Trade and Economic Partnership Agreement (TEPA) signed between India and the four EFTA member nations (Switzerland, Norway, Iceland, and Liechtenstein) to facilitate investments and expand mutual market access), wherein the four EFTA countries committed (pledge, promise, bind, obligate) to facilitate $100 billion of investments in India over 15 years. To be sure (certainly, admittedly, undoubtedly, of course), these are commitments to facilitate and not commitments to invest, but getting them included in the text (document, wording, content, manuscript) of the deal is nevertheless (in spite of that; nonetheless, even so, however, regardless) significant. To help this along (to facilitate the progress or development of a particular initiative or process; assist, advance, promote, expedite), India will create a dedicated (specialized, specific, designated, exclusive) desk (tackle, deal with, attend to, focus on) to address any issues New Zealander investors might face (encounter, experience, confront, tackle). Such a targeted (focused, specific, concentrated, tailored) approach to foreign investment is necessary if India wants to achieve the multiple goals of weaning off China, increasing and diversifying exports, creating jobs, bolstering (to support or strengthen; reinforce, prop up, boost, fortify) the capital account (a section of a country’s balance of payments that records all transactions between domestic and foreign entities involving changes in capital assets; financial account, national balance record), and generally increasing incomes. The other long-standing (having existed or continued for a long time; well-established, enduring, deep-rooted, lasting) need of helping domestic manufacturers scale up (to increase the size, amount, or importance of something; expand, enlarge, boost, step up) remains a sticky (difficult to deal with, resolve, or change; tricky, awkward, problematic, thorny) problem.

Courtesy: The Hindu

Important Word List With Meaning

1.compound (verb)

Hindi Meaning - बढ़ाना, लगातार बढ़ते रहना
English Meaning - augment, increase, multiply, magnify.

2.gain (noun)

Hindi Meaning - लाभ, वृद्धि
English Meaning - an increase in wealth, resources, or benefit; profit, advantage, advancement, return.

3.Free Trade Agreement (FTA) (noun)

Hindi Meaning - मुक्त व्यापार समझौता
English Meaning - an international treaty between two or more economies that reduces or eliminates barriers to trade in goods and services; trade deal.

4.underwhelm (verb)

Hindi Meaning - निराश करना, प्रभावित न करना
English Meaning - to fail to impress or excite; disappoint, let down, leave indifferent, fall short.

5.in isolation (phrase)

Hindi Meaning - अलग से, पृथक रूप में
English Meaning - considered separately from other things that it is connected with; by itself, alone, independently, apart.

6.nevertheless (adverb)

Hindi Meaning - फिर भी, तथापि
English Meaning - in spite of that; nonetheless, even so, however, regardless.

7.look at (phrasal verb)

Hindi Meaning - विचार करना, मूल्यांकन करना
English Meaning - to consider or examine something in a particular way; evaluate, analyze, assess, review.

8.impression (noun)

Hindi Meaning - धारणा, प्रभाव
English Meaning - a feeling, notion, or idea about someone or something; perception, belief, sense, opinion.

9.the fact that (phrase)

Hindi Meaning - तथ्य यह है कि
English Meaning - used to refer to a particular situation or undeniable reality; the reality that, the truth that, the certainty that.

10.negotiation (noun)

Hindi Meaning - वार्ता, बातचीत
English Meaning - formal discussion aimed at reaching an agreement; dialogue, talks, parley, diplomacy.

11.pandemic (noun)

Hindi Meaning - महामारी
English Meaning - an outbreak of a disease prevalent over a whole country or the world; global epidemic, widespread disease.

12.tariff friction (noun)

Hindi Meaning - शुल्क संबंधी विवाद, टैरिफ विवाद
English Meaning - trade dispute, tariff war, economic clash, commercial tension.

13.friction (noun)

Hindi Meaning - तनाव, विवाद
English Meaning - conflict, tension, dispute, discord, disagreement.

14.supply chain (noun)

Hindi Meaning - आपूर्ति श्रृंखला
English Meaning - the sequence of processes involved in the production and distribution of a commodity; distribution network, logistics network, supply network.

15.welcome (adjective)

Hindi Meaning - स्वागतयोग्य, अच्छा
English Meaning - pleasing, agreeable, desired, appreciated.

16.diversify (verb)

English Meaning - to enlarge or vary the range of products or field of operation; branch out, vary, expand, broaden.

17.account for (phrasal verb)

English Meaning - comprise, make up, constitute, represent.

18.come soon after (phrase)

English Meaning - to happen shortly following another event; follow closely, occur sequentially, trail immediately, succeed promptly.

19.make up (phrasal verb)

English Meaning - account for, comprise, constitute, represent.

20.compounding (adjective)

English Meaning - increasing, multiplying, or augmenting over time; escalating, intensifying, accumulating, growing.

21.The India-New Zealand Free Trade Agreement (noun)

English Meaning - a newly negotiated bilateral commercial treaty between India and New Zealand aimed at immediately eliminating goods tariffs, protecting sensitive sectors, and facilitating $20 billion in investments over 15 years.

22.build on (phrasal verb)

English Meaning - to use something as a base or foundation for further development; expand on, enlarge on, develop, enhance.

23.underwhelming (adjective)

English Meaning - failing to impress or make a positive impact; disappointing, uninspiring, unimpressive, anticlimactic.

24.COVID-19 (noun)

English Meaning - Coronavirus disease 2019, an infectious disease caused by the SARS-CoV-2 virus that resulted in a global public health crisis; coronavirus.

25.U.S. tariff friction (noun)

English Meaning - a state of economic conflict or tension resulting from the United States levying taxes on imported goods; trade dispute, tariff war, economic clash, commercial tension.

26.tariff (noun)

English Meaning - a tax or duty to be paid on a particular class of imports or exports; duty, tax, levy, toll.

27.wean off (phrasal verb)

English Meaning - to make someone gradually stop using or depending on something; detach from, free from, break the habit of, discourage from.

28.chip away (phrasal verb)

English Meaning - to gradually reduce something so that it becomes smaller or weaker; diminish, erode, whittle down, wear away.

29.strategic (adjective)

English Meaning - relating to the gaining of overall or long-term advantage; calculated, tactical.

30.export destination (noun)

English Meaning - a country or region to which goods are sold and shipped; foreign market.

31.mercurial (adjective)

English Meaning - subject to sudden or unpredictable changes of conditions or temperament; volatile, unpredictable, unstable, erratic.

32.in charge of (phrase)

English Meaning - having responsibility for or control over; responsible for, overseeing, leading, managing.

33.export market (noun)

English Meaning - a foreign country or demographic to which domestic goods and services are sold; international market, overseas market.

34.clear (adjective)

English Meaning - evident, obvious, apparent, unambiguous.

35.urgent (adjective)

English Meaning - pressing, critical, crucial, immediate.

36.EFTA nation (noun)

English Meaning - a member state of the European Free Trade Association (an intergovernmental organization promoting free trade, comprising Iceland, Liechtenstein, Norway, and Switzerland); EFTA member state.

37.take advantage of (phrase)

English Meaning - to make good use of the opportunities offered by something; exploit, utilize, capitalize on, make the most of.

38.dismiss (verb)

English Meaning - reject, brush off, disregard, ignore.

39.on the basis of (phrase)

English Meaning - due to, because of, by reason of, founded on.

40.unfair (adjective)

English Meaning - unjust, biased, discriminatory, inequitable.

41.negotiator (noun)

English Meaning - a person who conducts talks to reach an agreement; mediator, diplomat, envoy, representative.

42.comparative (adjective)

English Meaning - relative, proportional, relational, corresponding.

43.advantage (noun)

English Meaning - benefit, edge, leverage.

44.push through (phrasal verb)

English Meaning - to get a plan, law, or agreement officially accepted quickly; force through, drive through.

45.key (adjective)

English Meaning - of crucial importance; critical, vital, essential, pivotal.

46.unprecedented (adjective)

English Meaning - never done or known before; unparalleled, unequalled, unmatched, groundbreaking.

47.goods tariff (noun)

English Meaning - a tax levied by a government on physical merchandise being imported or exported.

48.execution (noun)

English Meaning - implementation, enforcement, realization.

49.concession (noun)

English Meaning - a thing that is granted, especially in response to demands during negotiations; compromise, modification, adjustment, exception.

50.sensitive sector (noun)

English Meaning - an industry or area of the economy that is vulnerable to foreign competition and typically protected during trade pacts; vulnerable industry, protected sector, crucial economic segment.

51.dairy (noun)

English Meaning - an industry or sector dealing with the production, processing, and distribution of milk and milk products; milk industry.

52.keen (adjective)

English Meaning - showing a strong and eager desire; eager, enthusiastic, anxious, determined.

53.commitment (noun)

English Meaning - an engagement, obligation, or promise to do something; pledge, assurance, vow, obligation.

54.facilitate (verb)

English Meaning - to make easy, ease, make possible, smooth the path of, enable.

55.provision (noun)

English Meaning - clause, stipulation, condition, requirement.

56.EFTA trade pact (noun)

English Meaning - the Trade and Economic Partnership Agreement (TEPA) signed between India and the four EFTA member nations (Switzerland, Norway, Iceland, and Liechtenstein) to facilitate investments and expand mutual market access.

57.trade pact (noun)

English Meaning - an agreement between two or more countries concerning the exchange of goods and services; trade agreement, trade deal.

58.pact (noun)

English Meaning - a formal agreement, treaty, deal, accord.

59.wherein (adverb)

English Meaning - in which place, state, or respect; inside which, in what.

60.commit (verb)

English Meaning - pledge, promise, bind, obligate.

61.to be sure (phrase)

English Meaning - certainly, admittedly, undoubtedly, of course.

62.text (noun)

English Meaning - document, wording, content, manuscript.

63.nevertheless (adverb)

English Meaning - in spite of that; nonetheless, even so, however, regardless.

64.to help this along (phrase)

English Meaning - to facilitate the progress or development of a particular initiative or process; assist, advance, promote, expedite.

65.dedicated (adjective)

English Meaning - specialized, specific, designated, exclusive.

66.desk (noun)

English Meaning - a specific counter or specialized division within an organization handling particular duties; department, division, branch, section.

67.address (verb)

English Meaning - tackle, deal with, attend to, focus on.

68.face (verb)

English Meaning - encounter, experience, confront, tackle.

69.targeted (adjective)

English Meaning - focused, specific, concentrated, tailored.

70.bolster (verb)

English Meaning - to support or strengthen; reinforce, prop up, boost, fortify.

71.capital account (noun)

English Meaning - a section of a country’s balance of payments that records all transactions between domestic and foreign entities involving changes in capital assets; financial account, national balance record.

72.long-standing (adjective)

English Meaning - having existed or continued for a long time; well-established, enduring, deep-rooted, lasting.

73.scale up (phrasal verb)

English Meaning - to increase the size, amount, or importance of something; expand, enlarge, boost, step up.

74.sticky (adjective)

English Meaning - difficult to deal with, resolve, or change; tricky, awkward, problematic, thorny.