New Delhi, Sept. 16 -- New Zealand's Parliament has approved legislation to implement the country's Free Trade Agreement (FTA) with India, marking a major step towards bringing the bilateral trade pact into force. The legislation was passed by a strong majority of 93-29 on Wednesday.
New Zealand Prime Minister Christopher Luxon welcomed the parliamentary approval, describing the agreement as a landmark deal expected to expand access to India's large and rapidly growing market. He said the pact would create more opportunities for New Zealand businesses, support job creation and contribute to higher incomes for people in the country. The agreement was signed by India and New Zealand in April 2026 after negotiations that began in March 2025. It is aimed at significantly reducing trade barriers and expanding market access for exporters from both countries. The FTA will come into force after India and New Zealand complete their respective domestic ratification procedures.
Under the agreement, 57% of New Zealand's exports to India will receive duty-free access from the first day of implementation. Once fully implemented, tariffs will be eliminated or substantially reduced on around 95% of New Zealand's exports to India. The agreement is expected to benefit a range of New Zealand industries, including agriculture, food, forestry, seafood, manufacturing and services. Kiwifruit, apples, meat, wool, seafood, timber and dairy-related products are among the sectors expected to gain from improved access to the Indian market. New Zealand's government said the country's kiwifruit industry alone could save around NZ$125 million in tariffs over five years under the agreement. The pact also provides improved access for apples, cherries, avocados, persimmons and blueberries, while tariffs on wine and mānuka honey will also be reduced over time.
The agreement is also expected to strengthen services trade between the two countries, including areas such as education, tourism, professional services and technology. It includes provisions designed to provide greater predictability and market access for New Zealand service providers. For India, the agreement provides expanded access for Indian exports to New Zealand. India has secured the elimination of duties on all its exports under the pact, while New Zealand has also committed to a USD 20 billion investment package in India over the coming years.
The two countries are targeting a significant expansion in bilateral trade. Trade between India and New Zealand stood at around NZ$3.99 billion in the year to June 2026, with India ranking among New Zealand's important export markets. The agreement is expected to provide a framework for expanding two-way trade and investment. New Zealand Trade and Investment Minister Todd McClay said the parliamentary vote demonstrated strong political support for the agreement. He said the FTA would help New Zealand exporters build new business relationships in India and take advantage of the country's growing consumer market. The agreement is expected to enter into force later this year once the required domestic procedures in both countries have been completed.
Published by HT Digital Content Services with permission from Millennium Post.