New Zealand’s Parliament on Wednesday passed legislation to implement its free trade agreement (FTA) with India, clearing a key step towards bringing the pact into force. The legislation was approved by a 93-29 vote, with support from the opposition Labour Party. Under the agreement, tariffs on about 95% of New Zealand’s exports to India will eventually be eliminated or significantly reduced.
The India-New Zealand FTA, signed by the two countries in April, provides duty-free access to New Zealand for 100% of Indian exports once the agreement comes into force. The pact is expected to benefit Indian exporters of sectors including textiles, leather, footwear, engineering goods, processed foods, ceramics, carpets and automobiles.
Commerce Secretary Rajesh Agrawal said on Tuesday that India expects the agreement to become operational in the second half of October, with October 19 being indicated as the likely date by an official. The final date will be announced after both sides complete the required operational procedures.
New Zealand Trade Minister Todd McClay welcomed the passage of the legislation, saying, “For exporters, the benefits are immediate and substantial.”
More than half of New Zealand’s exports covered by the agreement will become duty-free from the first day of implementation, while tariffs on 95% of its exports to India will be eliminated or significantly reduced once the agreement is fully implemented.
The agreement also includes a commitment from New Zealand to invest USD 20 billion in India over the next 15 years. India, meanwhile, has retained protections for sensitive sectors, including dairy and several agricultural products.
The two countries recorded two-way trade of around NZ$3.99 billion in the year to June 2026, according to Reuters. India is New Zealand’s ninth-largest market for goods and services exports.
