Chandigarh, Sept. 21 -- The India-New Zealand free trade agreement (FTA) is set to give Gurgaon-Manesar's automobile, auto components and engineering industries tariff-free access to the New Zealand market, although converting the tariff advantage into actual orders will depend on freight costs, standards and distribution networks.

New Zealand currently imposes tariffs of up to 10 per cent on around 450 tariff lines covering key Indian exports, including automobiles and auto components. Once the FTA takes effect, duties on all 8,284 tariff lines will be eliminated immediately, widening market access for the manufacturing cluster.

The FTA was signed in New Delhi on April 27. New Zealand's Parliament passed the implementing legislation th...