In a major development for India’s international trade ambitions, New Zealand’s Parliament has approved legislation required to implement its Free Trade Agreement with India.
The legislation passed on September 16 by a 93–29 vote, receiving support from New Zealand’s opposition Labour Party as well as the governing side. Reuters reported that the agreement will significantly reduce or eliminate tariffs on approximately 95% of New Zealand’s exports to India once fully implemented.
The development is important for India because the agreement is designed to substantially expand two-way trade and create greater access for Indian goods and services in the New Zealand market.
Under the agreement, New Zealand has committed to provide zero-duty access for Indian exports across all sectors once the FTA enters into force. India’s Ministry of Commerce says the agreement is expected to benefit sectors including textiles, pharmaceuticals, engineering products, leather, agricultural products and MSMEs.
The agreement also contains a major services and mobility component. According to India’s Commerce Ministry, New Zealand has made commitments covering 118 services sectors, including IT and IT-enabled services, professional services, education, tourism, construction and telecommunications.
For Indian professionals, one particularly notable provision is a dedicated employment pathway allowing up to 5,000 Indian professionals in fields such as IT, healthcare and engineering to work in New Zealand for periods of up to three years. The agreement also provides for 1,000 Working Holiday Visas annually.
Investment is another major component. New Zealand has committed to facilitating US$20 billion in investment into India over 15 years, according to India’s official FTA factsheet. The agreement is also intended to support cooperation in areas such as pharmaceuticals, medical devices, agriculture, education and traditional medicine.
At the same time, India has retained protections for several sensitive agricultural and industrial sectors. The Commerce Ministry says areas including dairy and several agricultural products have been excluded or subject to calibrated market access arrangements.
New Zealand’s government said 57% of its exports to India will receive duty-free treatment from day one, while tariffs on 95% of its exports will eventually be eliminated or substantially reduced.
The parliamentary approval therefore represents an important procedural step toward implementation of an agreement that could deepen India’s economic relationship with New Zealand and expand opportunities for Indian exporters, professionals and businesses.
