New Zealand and India ratify free trade agreement

New Zealand’s trade and investment minister, Todd McClay, exchanged the ratification instruments with India’s High Commissioner to New Zealand, Muanpuii Saiawi.

The ratification confirms New Zealand has completed all domestic steps required for the agreement to enter into force.

The government says 57% of New Zealand exports to India will attract zero tariffs from day one, including sheep meat, wool and coal.

It adds that more than 95% of forestry and wood exports will also receive duty-free access. Exporters of albumins, apples and kiwifruit will gain preferential quota access to the Indian market. Over time, duty-free coverage is expected to increase to 82%, while the remaining 13% of exports will benefit from significant tariff reductions.

Wine duties will drop from 150% to either 25% or 50% over a decade, depending on the product’s value.

Christopher Luxon and Narendra Modi have agreed to aim for a doubling of trade between New Zealand and India by 2030, building on about $2.3 billion in trade recorded in the year to June.

McClay said the agreement would help New Zealand companies secure improved access to one of the world’s fastest-growing economies.

“As global markets become more uncertain, it has never been more important for New Zealand exporters to diversify, build resilience and pursue new opportunities,” he said.

The deal is also intended to offer greater predictability for services exporters and investors, and to support New Zealand firms looking to expand their footprint in India.

The agreement covers trade between New Zealand and India, a country with a population of around 1.4 billion.