New Zealand's Minister for Trade and Investment, Todd McClay, has said that the Free Trade Agreement (FTA) signed with India on Monday is being fast-tracked and could come into force before the end of this year. He confirmed that the agreement will be introduced in New Zealand's Parliament as early as tomorrow to speed up ratification.
McClay said both sides aim for rapid implementation, followed by a phased rollout over about seven years. On day one, tariffs on all Indian exports to New Zealand will be reduced to zero, while over 50% of New Zealand exports to India will also become duty-free immediately. By the end of the transition period, around 95% of New Zealand exports will face zero or significantly reduced tariffs.
He described the agreement as a "rules-based framework" that provides certainty for businesses amid global trade uncertainty, adding that it will help boost investment and economic growth in both countries.
Key trade benefits
McClay highlighted that Indian exporters will gain broad access to the New Zealand market with minimal restrictions, covering sectors like chemicals, fertilisers, agricultural equipment, and manufactured goods. For New Zealand, major gains are expected in exports such as lamb, seafood, and horticultural products.
For consumers in India, the deal is expected to bring greater choice, better pricing, and assured quality in imported goods from New Zealand.
Political and diplomatic momentum
In a second statement, McClay credited strong leadership from Prime Ministers Narendra Modi and Christopher Luxon for helping conclude the agreement in just nine months. He noted that their growing bilateral engagement, including high-level visits and trade delegations, played a key role in accelerating negotiations.
He added that while governments have completed most of the groundwork, the focus will now shift to businesses on both sides to explore opportunities created by the agreement. Trade missions between India and New Zealand are expected to increase in the coming months.
McClay also expressed optimism about future relations, saying he looks forward to hosting Prime Minister Modi in New Zealand. He highlighted shared democratic values between the two countries and even referenced cricket ties, noting recent sporting encounters and jokingly inviting India's cricket team for another match in New Zealand.
Overall, both governments have signalled that the FTA marks a major step forward in strengthening economic and strategic ties between India and New Zealand.
(With inputs from IANS)
