New Zealand’s parliament passed legislation enabling a free-trade agreement with India, clearing the way for a deal Prime Minister has described as ‘once-in-a-generation,’ news agency Bloomberg said in a report.
Lawmakers passed the bill 93-29 on Wednesday, Trade Minister Todd McClay said in Wellington. The FTA was backed by the ruling National Party and the main opposition , securing a clear majority in parliament.
“The India FTA opens the door for Kiwi exporters to one of the world’s largest and fastest-growing economies,” McClay said as per news agencies.
The FTA was signed by India and New Zealand on April 27.
“Parliament today overwhelmingly backed the long-term benefits the agreement will deliver for all New Zealanders.”
What is the deal about?
The parliamentary approval marks another step towards implementation of the India-New Zealand FTA, with both sides having set out measures covering trade in goods and services, investment, agriculture, mobility and customs procedures.
Under the agreement, New Zealand will provide duty-free access for 100 per cent of Indian exports to its market, covering all tariff lines.
The agreement is also aimed at improving competitiveness and employment opportunities in India’s labour-intensive sectors, including textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed foods.
The agreement provides for a $20 billion investment commitment by New Zealand in India over 15 years, aimed at strengthening long-term economic cooperation between the two countries.
In July this year, India and New Zealand agreed to work towards doubling bilateral trade in goods and services to NZ$7 billion, or approximately ₹35,000 crore, by 2030, as Prime Minister and his New Zealand counterpart, Christopher Luxon, welcomed the in trade and economic ties between the two countries.
PM Modi landed in in July, marking the first visit by an Indian Prime Minister to Auckland in 40 years. On July 11 (local time), the two leaders held delegation-level talks and encouraged businesses to deepen ties, explore opportunities, and build on complementarities between the two economies.
India-New Zealand joint statement
In a statement released then, the Ministry of External Affairs () wrote that PM Modi and Luxon agreed to “an ambitious long-term vision for the Strategic Partnership, which aims to to a new level, strengthen existing cooperation mechanisms, and explore new avenues for deepening cooperation, both bilaterally and multilaterally.”
Citing the long-standing friendship, shared democratic values, strong people-to-people connections, and common interests in the , the two leaders agreed to upgrade India-New Zealand ties to a Strategic Partnership. The two sides also approved the India-New Zealand Strategic Partnership: Roadmap to 2030, which will serve as the framework for bilateral cooperation over the next four years.
The deal, which was concluded in December and signed in April, to become operational in the second half of October, government said in September.
India is New Zealand’s ninth largest export market, with two-way trade totaling almost NZ$4 billion ($2.3 billion) in the 12 months through June.
The agreement eliminates tariffs on a range of New Zealand exports, including wine, kiwifruit and apples, with 57% of shipments becoming duty-free immediately. Once fully implemented, tariffs will be eliminated or significantly reduced on 95% of exports.
The deal also eliminates levies on Indian exports and eases mobility rules for students and workers from the South Asian nation.
100% duty-free access for India goods
Union Commerce Minister Piyush Goyal had said in July that the -NZ FTA granted 100% duty-free access for Indian exports to New Zealand, “opening significant opportunities for MSMEs, farmers, women, youth, professionals, and job-creating sectors, while safeguarding India’s sensitive interests through a balanced and calibrated framework.”
He added that the tariff‑rate quotas with minimum import prices safeguard domestic farmers, while explicit recognition of and related wellness services expands opportunities for Indian practitioners in New Zealand.
What product categories does the FTA cover?
The deal covers all lines, or product categories, and is “expected to significantly boost MSMEs and employment by enhancing competitiveness in labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering goods, and processed foods.”
As per the deal, products that will enjoy tariff reductions include wine, pharmaceutical drugs, polymers, aluminium, iron and steel articles, and goods under tariff rate quotas, such as Manuka honey, apples, kiwifruit, and albumins, including milk albumin.
The India-NZ bilateral deal also includes a commitment to facilitate $20 billion in into India. A rebalancing clause is incorporated into the agreement to provide a framework for addressing any shortfall in investment delivery, thereby ensuring robust and tangible economic outcomes.
The pact also includes agricultural cooperation focused on improving productivity and capabilities in sectors including kiwifruit, apples and honey. The two sides will work on planting material, research, technical assistance, orchard management, post-harvest practices, supply chains and food safety.
In services, New Zealand has across 118 sectors, with Most-Favoured Nation treatment in 139 sectors, according to an official release.
The agreement also creates new mobility opportunities for Indian students and professionals. It includes a Temporary Employment Entry visa pathway with a quota of 5,000 skilled Indians for stays of up to three years, covering occupations including AYUSH practitioners, yoga instructors, Indian chefs and music teachers, as well as professionals in IT, engineering, healthcare, education and construction.
A Working Holiday Visa arrangement will allow 1,000 young Indians each year to travel to New Zealand for up to 12 months.
The agreement also includes an annex on student mobility and post-study work provisions, under which eligible Indian students can work up to 20 hours a week while studying and receive extended post-study work visas depending on their qualification.
The FTA further provides for cooperation in areas including investment, research and innovation, technology, skills, renewable , digital services and infrastructure.
(With agency inputs)