1 hr ago
New Zealand Parliament Passes India Free Trade Agreement
New Zealand’s Parliament approved a trade agreement with India.
The agreement is meant to make buying and selling goods between the two countries cheaper.
About 95% of New Zealand’s exports to India would have lower or no tariffs.
More than half of the covered products would be tariff-free immediately when the deal begins.
Indian goods would also enter New Zealand without tariffs.
New Zealand plans to invest $20 billion in India over 15 years.
The opposition Labour Party supported the legislation.
The agreement will start only after both countries finish their approval processes.
New Zealand’s parliament passed legislation implementing a free trade agreement with India by a 93-29 vote.
The agreement would eliminate or significantly reduce tariffs on about 95% of New Zealand exports to India.
More than half of covered products would become duty-free when the agreement takes effect.
All Indian goods would receive duty-free access to New Zealand under the deal.
New Zealand has agreed to invest $20 billion in India over the next 15 years, with the agreement awaiting both countries’ ratification procedures.
- Who
- New Zealand’s Parliament, the New Zealand government, India, and the opposition Labour Party are involved.
- What
- Parliament passed legislation implementing a free trade agreement that reduces or removes tariffs and includes a $20 billion New Zealand investment in India.
- Where
- The legislation was passed in New Zealand, and the agreement covers trade between New Zealand and India.
- When
- The legislation passed on Wednesday; the agreement is expected to enter into force this year after ratification procedures are completed.
- Why
- The agreement is intended to expand trade and provide exporters with lower or no tariffs.
Key facts
- Parliamentary vote
- 93-29, with support from the opposition Labour Party
- New Zealand exports affected
- About 95% would have tariffs eliminated or significantly reduced
- Immediate tariff-free coverage
- More than half of covered products
- Indian goods in New Zealand
- All Indian goods would receive duty-free access
- Planned investment
- New Zealand has agreed to invest $20 billion in India over 15 years
- Two-way trade
- NZ$3.99 billion in the year to June 2026
- Agreement status
- Awaiting completion of ratification procedures by both countries
Quotes
Todd McClay
New Zealand’s trade minister
“We expect this high-quality agreement to enter into force this year, delivering on our promise to complete a free trade agreement with India this term.”
NDTV
“For exporters, the benefits are immediate and substantial”
NDTV
Sources
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