The agreement, which was concluded in December, provides for the elimination of duties by New Zealand on all Indian exports. In return, India will reduce tariffs on 95 percent of imports from the South Pacific nation. The signing ceremony, held in New Delhi, was attended by business leaders from both countries, underscoring the economic significance of the pact.
New Delhi has intensified efforts over the past year to diversify its trade partnerships, pursuing agreements with major economies such as the United Kingdom and the European Union. The strategy aims to broaden trade avenues and reduce dependence on any single region amid an evolving global economic landscape.
New Zealand Prime Minister Christopher Luxon described the agreement as transformative, stating that it represents a once-in-a-generation opportunity for New Zealand exporters. In a post on X, he said the deal provides unprecedented access to a market of 1.4 billion people and an economy projected to become the third largest in the world.
The agreement was formally signed by India’s Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade Minister Todd McClay. Following the signing, the pact will undergo New Zealand’s standard parliamentary scrutiny process, including review by a select committee before the introduction of enabling legislation.
During negotiations, India emphasized the protection of its domestic agricultural sector, particularly sensitive areas such as dairy, while engaging with one of the world’s largest dairy exporters. The agreement balances market access with safeguards for domestic producers.
Under the terms of the deal, tariffs on key products including sheep meat, wool, and coal imported from New Zealand will be removed immediately. The agreement also enhances access to fruits such as kiwis, cherries, avocados, persimmons, and blueberries, potentially increasing their availability in the Indian market.
Calling the agreement a landmark moment in bilateral relations, Prime Minister Narendra Modi said the pact would significantly strengthen the India–New Zealand partnership. He emphasized that the agreement would benefit farmers, youth, women, micro, small and medium enterprises, artisans, startups, students, and innovators. He added that the deal would inject unprecedented momentum into the developmental partnership between the two nations.
The India–New Zealand free trade agreement stands as a decisive step in strengthening economic ties, enhancing bilateral cooperation, and positioning both countries to navigate an increasingly complex global trade environment.
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