The FTA covers 20 chapters, including trade in goods, services, rules of origin, customs facilitation, sanitary and phytosanitary measures, technical barriers to trade, dispute settlement, and legal provisions.
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Under the pact, India will gain duty-free access for all exports to New Zealand, including labour-intensive sectors such as textiles, leather, plastics, and engineering goods. India has also secured commitments in key services areas like IT, education, financial services, tourism, and construction, along with a new temporary employment visa pathway allowing up to 5,000 Indian professionals to work in New Zealand for up to three years. Additionally, India will receive USD 20 billion in expected FDI inflows from New Zealand over 15 years.
New Zealand will gain duty-free access for over 54% of its exports to India from day one, including sheep meat, wool, coal, and forestry products, while tariffs on several other goods, including seafood, iron, steel, and aluminium items, will be reduced or phased out over time.
Sensitive agricultural products such as apples, kiwifruit, manuka honey, and dairy will be protected through tariff-rate quotas, minimum import prices, and safeguards, while India has excluded sectors like dairy, sugar, and certain metals to protect domestic interests.
Also Read: ‘New chapter in India-New Zealand economic ties’: Piyush Goyal as FTA nears signingBilateral trade between the two countries stood at around USD 2.4 billion in 2024, with services playing a significant role. The agreement is expected to deepen economic ties, strengthen India’s Indo-Pacific trade strategy, and provide New Zealand improved access to one of the world’s fastest-growing major economies.
(With inputs from agencies)