NEW DELHI — India and New Zealand have officially inked a free-trade agreement, a pact described as a “once-in-a-generation” deal that significantly slashes tariffs on a vast majority of goods and broadens market access, even as global commerce faces headwinds from Middle East tensions.
The agreement, finalized in December and signed in New Delhi on Monday, will lead to New Zealand eliminating duties on all Indian imports. Concurrently, India will reduce tariffs on 95% of goods originating from the South Pacific nation.
The signing ceremony, attended by a substantial contingent of Indian and New Zealand business leaders, occurs at a time when the ongoing conflict in the Middle East is creating significant disruptions in global food and energy markets, impacting India directly. In the past year, New Delhi has intensified its economic liberalization efforts, securing similar agreements with major partners like the United Kingdom and the European Union. This strategy aims to diminish reliance on any single economic bloc and foster trade diversification.
New Zealand Prime Minister Christopher Luxon hailed the agreement on X, stating, “This is a once-in-a-generation agreement that gives New Zealand exporters unprecedented access to 1.4 billion people and an economy set to become the third-largest in the world.”
The pact was formally signed by India’s Commerce and Industry Minister Piyush Goyal and his New Zealand counterpart, Todd McClay. According to a statement from the New Zealand government, the signing initiates the country’s standard parliamentary review process. The agreement will undergo scrutiny by a select committee, allowing for public examination before enabling legislation is introduced.
During the trade talks last year, India had stressed its commitment to safeguarding the interests of its domestic farmers, particularly in the dairy and other agricultural sectors, while negotiating with New Zealand, the world’s leading dairy exporter.
The agreement mandates the immediate removal of tariffs on key New Zealand exports, including sheep meat, wool, and coal. Additionally, it facilitates improved market access for a range of fruits, such as kiwis, cherries, avocados, persimmons, and blueberries.
This comprehensive trade deal represents a significant step in strengthening bilateral economic ties and is expected to unlock substantial opportunities for businesses in both nations, bolstering trade flows amidst a complex global economic environment.
