New Zealand Concludes Trade Agreement with India Following Extended Negotiations

Post by : Raina Nasser

New Zealand has successfully concluded a free trade agreement with India, as confirmed by sources familiar with the negotiations. This development comes after lengthy discussions between representatives from both nations.

The trade deal was finalized following a recent visit by New Zealand’s Trade Minister to India. A formal announcement is set to occur shortly, with key leaders from New Zealand preparing to discuss the agreement in the capital.

Establishing a trade partnership with India was a pivotal objective for Prime Minister Christopher Luxon after his election victory in 2023. Upon taking office, his administration swiftly resumed talks with India.

Conversations between the countries initiated in March, after Luxon’s meeting with Indian Prime Minister Narendra Modi in New Delhi. Since then, officials have diligently worked towards a mutual agreement.

Previous attempts to finalize such an agreement faced significant obstacles, primarily due to India's desire to safeguard its dairy industry from international competition. India maintains strict regulations on agricultural imports, complicating prior discussions.

In June, a senior official from New Zealand noted the complexities involved in the negotiations. He indicated that India imposes high tariffs on agricultural goods, which serve as formidable barriers. Historically, dairy and apple imports had been excluded from India’s earlier trade agreements.

Despite these hindrances, both nations persevered, leading to the successful finalization of the New Zealand-India trade deal.

Currently, trade between the two countries remains minimal, with New Zealand exporting goods valued at NZ$804 million to India in the year ending September, positioning India as only the 21st largest purchaser of New Zealand products.

A primary objective of the new agreement is to enhance exports from New Zealand to India. However, the deal encompasses more than just goods; it emphasizes services, investment, and fortified bilateral relations.

The trade pact is also anticipated to facilitate pathways for Indian students and workers to study and gain employment in New Zealand, thus promoting strong interpersonal connections.

Officials are optimistic that the New Zealand-India trade deal will unlock fresh opportunities for businesses, bolster job creation, and deepen the long-term cooperation between the two nations.