Key Takeaways
- The free trade agreement between India and New Zealand will come into force on October 20.
- The deal aims to boost exports and attract investment amid global trade shifts.
- New Zealand’s exports to India, including wine, kiwi fruit, and apples, will see reduced tariffs.
A free trade agreement between India and New Zealand, signed in April, will come into force on October 20, according to Indian trade minister Piyush Goyal.
The agreement is part of India’s efforts to diversify its export markets, particularly as it seeks to reduce reliance on the United States, its largest export destination.
Under the deal, tariffs on about 95% of New Zealand’s exports to India, including wine, kiwi fruit, and apples, will be eliminated or significantly reduced.
The pact will provide all Indian goods duty-free access to New Zealand and ease mobility rules for students and workers, enhancing the flow of people and goods between the two nations.
New Zealand Prime Minister Christopher Luxon and Indian Prime Minister Narendra Modi have committed to doubling bilateral trade by 2030, with current trade standing at about $2.3 billion in the 12 months through June.
New Zealand Trade Minister Todd McClay emphasized the importance of the agreement, stating, 'At a time when there is uncertainty around the world in trade, we see tariff rates escalating, we see barriers being put up, India and New Zealand show that we can agree to terms that are beneficial for trade and businesses.'
The agreement is seen as a strategic move by India to mitigate potential impacts from U.S. trade policies, particularly the new measures to levy tariffs over the purchase of Russian oil.
India has accelerated efforts to diversify export markets through a series of trade agreements with major economies, including Britain and the European Union.
At a time when there is uncertainty around the world in trade, we see tariff rates escalating, we see barriers being put up, India and New Zealand show that we can agree to terms that are beneficial for trade and businesses.
Todd McClay, New Zealand Trade Minister
