India-New Zealand free trade pact to come into force on October 20 after ratification

A free trade agreement between India and New Zealand, signed in April, will come into force on October 20, Indian trade minister Piyush ‌Goyal said on Monday, as New Delhi seeks to boost exports and attract investment amid shifts in global trade. Both countries ratified the pact on Monday, with New Zealand Trade and Investment Minister Todd McClay exchanging documents with India's High Commissioner to New Zealand, Muanpuii Saiawi, at Parliament.

The deal comes as ‌US President Donald Trump has signed a lawallowing tariffs of up to 100% on countries such as India for buying Russian oil. India ‌has accelerated efforts to diversify export markets away from the US, its biggest market, through trade agreements with major economies, including Britain and the European Union.

New Zealand's parliament last week passed legislationneeded to implement the agreement. "The New Zealand-India FTA will level the playing field and unlock access for Kiwi businesses in one of the fastest growing markets in ⁠the world," ​McClay said in a statement.

Under ⁠the agreement, tariffs on about 95% of New Zealand exports to India will be eliminated or reduced when the deal is fully implemented. McClay said 57% of New Zealand ⁠exports will be tariff-free from day one, including sheep meat, wool and coal, and more than 95% of forestry and wood exports. Duty-free coverage will later rise ​to 82%, while the remaining 13% will face steep tariff cuts.

The agreement gives all Indian goods duty-free access to New Zealand and ⁠eases mobility rules for students and workers. Wellington has also agreed to invest $20 billion in India over the next 15 years. New Zealand exporters will receive preferential quota access for apples, ⁠kiwifruit ​and albumins. Wine tariffs will fall from 150% to either 25% or 50% over 10 years, depending on product value.

Prime Ministers Christopher Luxon and Narendra Modi have committed to doubling bilateral trade by 2030, from about $2.3 billion in the 12 months through June. "India and New Zealand ⁠show that we can agree to terms that are beneficial for trade and businesses," McClay said via video conference, citing rising tariffs and ⁠global business uncertainty.

India said last week that ⁠the new measures to levy tariffs over the purchase of Russian oil could impact bilateral ties with the United States, in a sharp response to the passing of the law.