New Zealand Parliament approves India FTA, tariffs to fall on most exports

New Delhi: New Zealand’s Parliament on Wednesday passed legislation needed for the free trade agreement (FTA) with India with lawmakers voting 93-29 in favour, according to Trade and Investment Minister Todd McClay.

McClay said the vote showed strong parliamentary support for the agreement and its expected economic benefits.

He said the FTA would give New Zealand exporters greater access to India, one of the world’s largest and fastest-growing economies.

According to McClay, 57 per cent of New Zealand exports to India will become duty-free when the agreement takes effect.

Once fully implemented, tariffs will be removed or significantly reduced on 95 per cent of exports.

The minister further noted that kiwifruit industry alone is expected to save about NZ$125 million in tariffs over five years.

He added that the agreement would provide faster border clearance and improved access to India’s growing middle class, which is increasing demand for food, technology, education, tourism, professional services and other products.

McClay said negotiations were announced in March 2025 and that the government expects the agreement to enter into force later this year.

He said the FTA would help New Zealand exporters expand business ties and support a goal set by Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon to double two-way trade by 2030.

The agreement will take effect once both countries complete their respective ratification procedures.

Earlier in August, a report said that India’s economic rise makes it a strategic partner for New Zealand and the recently signed free trade agreement (FTA) between the two nations is expected to deliver significant gains.

A report from Australia-based Westpac Institutional Bank highlighted India’s scale and growth potential suggesting that the FTA could add close to 0.1 per cent to New Zealand’s GDP over the next decade.

“India is one of the world’s fastest-growing major economies and offers access to a market of 1.4 billion people – one fifth of the world’s population,” the report said.

IANS