New Zealand and India Conclude Groundbreaking Trade Agreement

New Zealand has successfully wrapped up a free trade agreement with India, as confirmed by sources close to the negotiations. This accord comes after an extended dialogue between representatives of both nations.

The culmination of the New Zealand-India trade deal followed a visit from New Zealand’s Trade Minister to India. A public announcement is anticipated shortly, with prominent leaders from New Zealand expected to address the agreement in the capital.

Establishing a trade relationship with India was a primary objective for Prime Minister Christopher Luxon following his election victory in 2023. Shortly after assuming office, his administration renewed discussions with India.

Talks between the two countries commenced in March, prompted by Luxon’s meeting with Indian Prime Minister Narendra Modi in New Delhi. Since that time, officials from both sides have diligently sought a consensus.

Previous attempts to secure this agreement had faltered, largely due to India’s desire to shield its dairy industry from international competition. Tight regulations on agricultural imports had historically complicated negotiations.

In June, a senior New Zealand official noted that the talks would be challenging, highlighting that India imposes hefty tariffs on agricultural goods, creating substantial barriers. Furthermore, India had consistently excluded dairy and apple imports from previous trade agreements.

Despite these hurdles, both countries persisted in their dialogues, leading to the successful finalization of the New Zealand-India trade deal.

Currently, trade volume between New Zealand and India remains modest, with New Zealand exporting goods valued at NZ$804 million to India in the year ending September. This positions India as the 21st largest consumer of New Zealand exports.

A key focus of the agreement is to enhance New Zealand's exports to India. However, it also encompasses services, investment, and aims to foster stronger connections between the two countries.

The agreement is likely to create new avenues for Indian students and workers seeking opportunities to study and work in New Zealand. This is anticipated to enhance cultural and community ties.

Officials are optimistic that the New Zealand-India trade agreement will unlock new business opportunities, create jobs, and fortify the enduring partnership between the two nations.