The governments of India and New Zealand announced on Monday the conclusion of negotiations for a comprehensive free trade agreement. The deal, which officials stated is set to be formally signed in the first quarter of the coming year, aims to eliminate or reduce tariffs on a wide range of goods and services traded between the two countries.
According to statements from officials in both nations, the agreement will provide India with zero-duty access for all its goods exported to New Zealand. In return, New Zealand will receive phased duty concessions on approximately 95% of its exports to India, a figure that corresponds to about 70% of India’s tariff lines.
India’s Ministry of Commerce and Industry reported that the terms also include a commitment from New Zealand to facilitate investment worth $20 billion in India over a 15-year period. Additionally, the agreement is expected to provide clearer pathways for skilled Indian professionals seeking employment in New Zealand.
New Zealand Prime Minister Christopher Luxon commented on the agreement in a post on the social media platform X. He stated that his country’s exports to India are projected to increase by $1.1 billion to $1.3 billion annually over the next two decades as a result of the deal. “Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard-working New Zealanders,” Luxon wrote.
Sectors in India identified as primary beneficiaries of tariff-free access to New Zealand include textiles and apparel, engineering goods, and leather products. For New Zealand, key export categories expected to gain expanded market access in India include horticulture, such as fruit, as well as wood products, sheep wool, and wine.
However, the agreement does not cover all products. Citing domestic sensitivities, Indian negotiators excluded several key agricultural and animal products from the deal. These include dairy items such as milk, whey, and cheese, along with goat meat, onions, and almonds.
The agreement has also faced criticism within New Zealand. Winston Peters, leader of the New Zealand First party, issued a statement expressing reservations. According to The New Zealand Herald, Peters said the agreement “gives too much away, especially on immigration.”
Before the official signing, the negotiated text will undergo a legal review process, according to India’s chief negotiator, Petal Dhillon. Both governments have affirmed their intent to complete this final step and ratify the agreement early next year.
