New Zealand and India Conclude Free Trade Agreement, Providing Access to Indian Consumers

New Zealand and India have finalized a Free Trade Agreement (FTA), granting New Zealanders unprecedented access to 1.4 billion Indian consumers. This landmark FTA eliminates or reduces tariffs on 95% of New Zealand’s exports, with nearly 57% becoming duty-free immediately and rising to 82% upon full implementation, while the remaining 13% will undergo significant tariff reductions.
The agreement places New Zealand exporters on an equal or better footing compared to competitors across various sectors and opens up opportunities with India’s expanding middle class. Negotiations commenced on March 21 and concluded after nine months of intensive efforts.
Trade and Investment Minister Todd McClay stated, “This once-in-a-generation Agreement creates opportunities New Zealand exporters have never had in India. This deal is in New Zealand’s best interest and will generate numerous jobs and billions in additional exports.”
Key outcomes for New Zealand include tariff elimination or reduction on 95% of exports, immediate tariff elimination on certain products like sheep meat, wool, coal, forestry, and wood exports, as well as duty-free access on various seafood exports and iron, steel, and scrap aluminum over specific timelines.
Moreover, the FTA encompasses broad services coverage, emphasizing financial services, e-payments, and FinTech, and includes an MFN clause to safeguard services trade in the future. New Zealand exporters will benefit from duty-free access for dairy and other food ingredients for re-export through the FTA, facilitating collaboration and processing.
McClay highlighted, “In a world-first, New Zealand will have duty-free access for a large kiwifruit quota and preferential market access for apples and manuka honey in India.” The agreement also includes a provision for a review one year after implementation to explore further enhancements.