From RNZ · RNZ | Te Reo Irirangi o Aotearoa · · 1m 10s
Free Trade Agreement Impact on Prices
New Zealand's free trade deal with India may lower prices for some goods but not others.
In brief
New Zealand's free trade deal with India may lower prices for some goods but not others. New Zealand consumers may see price changes for exports like wool and apples due to India's trade policies. Originally reported by RNZ.
Free Trade Agreement Impact
New Zealand's free-trade agreement with India has been in force for a little over a week.
Effect on Prices
Economists say the effect on consumer prices depends on whether India is a large importing country for specific products.
Gareth Kiernan's View
Infometrics chief forecaster Gareth Kiernan said the effect would depend on India's role as a large importing country for products.
Wool and Apples
Wool and apples look like products where shifts in Indian demand could affect global prices.
Murat Ungor's View
Murat Ungor, an economist at Otago University, said trade creation could lower prices for local consumers.
Trade Diversion
Trade diversion occurs when imports switch from cheaper outside suppliers to partners due to tariffs.
Price Pass-Through
Market structure determines how much of tariff cuts reach consumers, often resulting in modest price changes.
The essence
New Zealand consumers may see price changes for exports like wool and apples due to India's trade policies.
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