A New Trade Era: New Zealand and India Seal Historic Free Trade Deal

New Zealand and India have concluded talks on a free trade agreement aiming to double bilateral trade in five years. The deal will reduce or eliminate tariffs on 95% of New Zealand's exports to India, while all Indian goods will enter New Zealand duty-free.

New Zealand and India have reached a landmark agreement on a free trade deal, poised to dramatically double their bilateral trade over the coming five years. The accord outlines plans to eliminate or reduce tariffs on a substantial 95% of New Zealand's exports to India, with more than half of these products enjoying duty-free status from the outset. Meanwhile, all Indian goods will benefit from duty-free access to the New Zealand market.

Highlighting the benefits of the agreement, New Zealand Prime Minister Christopher Luxon underscored India's status as the world's most populous nation and its rapid economic growth, emphasizing the exciting opportunities this presents for Kiwi jobs, exports, and economic expansion. The trade deal fulfills a 2022 campaign promise from New Zealand's National Party, which committed to finalizing such an agreement in its first term in power.

Despite the promising outlook, the deal faces hurdles, notably from New Zealand's coalition partner NZ First, which opposes the agreement on grounds of inadequate returns for New Zealand, notably in the dairy sector. The partnership between New Zealand and India joins a series of recent trade initiatives by India, pursuing greater market diversity amid shifting global trade dynamics.

(With inputs from agencies.)