New Zealand Parliament Approves India Trade Deal and Tariff Cuts
New Zealand’s parliament approved the legislation on Wednesday, with the opposition Labour Party voting in favour. The measure gives domestic effect to the free-trade agreement signed by New Zealand and India in April, but the pact is not yet operational.
More than half of the products covered by the agreement are scheduled to become exempt from customs duties when it takes effect. Across the agreement, approximately 95% of New Zealand’s exports to India will either become tariff-free or receive substantial duty reductions. Trade Minister Todd McClay said the advantages for exporters would be immediate and substantial and said the government expected the agreement to begin operating later this year.
India will receive broader access to the New Zealand market under the reciprocal arrangement: all Indian goods are to enter New Zealand without tariffs. The two governments have also linked the agreement to increased investment and wider economic co-operation. New Zealand has pledged to invest NZ$20 billion in India over the next 15 years.
The agreement comes as commercial exchanges between the countries expand. Two-way trade totalled NZ$3.99 billion in the year ending June 2026. India is New Zealand’s ninth-largest destination for goods and services exports. The governments have said the agreement will give businesses in each country improved access to the other’s market.
The negotiations followed several years of talks before the deal was formally signed in April. Its provisions may be relevant to New Zealand’s agricultural and food exporters, including dairy producers, although the treatment of individual products will be determined by the tariff schedules, implementation timetable and market conditions. Lower duties would reduce the import costs specified under the agreement.
Parliamentary approval in New Zealand is one stage of the process. New Zealand and India must still complete their own domestic ratification procedures before the FTA can take effect. Once that process is completed, the agreement will set the terms for the tariff reductions, duty-free access and associated investment and trade commitments.
