New Zealand secures FTA with India; to be signed in 1st half of 2026

Both the nations expect the agreement to be signed in the first half of next year.

The FTA establishes a high-quality economic partnership that promotes employment, facilitates skill mobility, drives trade and investment-led growth, fosters innovation for agricultural productivity, and enhances participation of micro, small and medium enterprises (MSMEs) to strengthen long-term economic resilience, a release from the Indian Ministry of Commerce & Industry said.

This FTA eliminates and reduces tariffs on 95 per cent of New Zealand’s exports—among the highest of any Indian FTA—with almost 57 per cent being duty-free from day one, increasing to 82 per cent when fully implemented, with the remaining 13 per cent subject to sharp tariff cuts.

It puts New Zealand exporters on an equal or better footing to the country’s competitors across a range of sectors and opens the door to India’s rapidly expanding middle class, a release from the New Zealand government said.

The nine-month long negotiations for the FTA began on March 21 this year.

“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 deliver thousands of jobs and billions in additional exports,” McClay was quoted as saying in the release.

Key outcomes for New Zealand include immediate tariff elimination on wool, coal and over 95 per cent of forestry and wood exports; duty-free access on most iron, steel and scrap aluminium over 10 years or less; duty-free access for most industrial products over five to 10 years; and most favoured nation (MFN) status and liberalisation across services exports.

“To protect specialist and iconic New Zealand product names in each other’s markets, we have agreed to establish Geographical Indication rules comparable to those we have with the EU,” the release noted.

The agreement includes chapters on customs facilitation and clearance, technical barriers to trade, sanitary and phyto-sanitary standards, culture, trade and traditional knowledge, economic cooperation, trade and sustainable development.

Both sides have also agreed to review the FTA a year after entry into force, McClay said.

“Boosting yields and farmer incomes, the agreement drives modern agricultural productivity. It opens doors for Indian businesses in the region through well-integrated directional exports and gives our youth choices to learn, work and grow on a global stage,” Indian Minister for Commerce and Industry Piyush Goyal said in the Indian ministry release.

The FTA would enhance the competitiveness of India’s labour-intensive sectors, including textiles, apparel, leather, footwear and handicrafts, directly supporting Indian workers, artisans, women, youth and MSMEs and integrating them deeper into global value chains, the release added.

ALCHEMPro News Desk (DS)