NZ Told India Unlikely to Open Up to Dairy, Even if FTA Comes to Pass

New Zealand’s chief trade negotiator, Vangelis Vitalis, has highlighted the challenges faced in trying to include dairy in any potential free trade agreement (FTA) with India. Speaking at the Waikato Farmers Forum, Vitalis shared that his Indian counterpart expressed skepticism about opening India's dairy market, especially to New Zealand. Despite India's recent trade agreements with countries like Australia and the UK, dairy was not included in any deals, a pattern that might continue due to competitive threats perceived from NZ dairy.

Trade Figures Vitalis noted that in September 2023, New Zealand triumphed in a trade dispute with Canada regarding dairy market access under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Meanwhile, Kiwi exporters faced new tariffs from the U.S., affecting sectors like wine and beef. Economic Impact The trade environment remains volatile, with global tensions influencing FTAs. DairyNZ reported that the U.S. incurred higher production costs compared to New Zealand, thanks to competitive farming practices.

However, global instability and trade disputes remain major challenges. A Future Focus Even with India's hesitancy, Vitalis emphasized New Zealand's commitment to accessing this substantial market. The Government aims to double exports by 2034, underscoring the importance of dairy. India's exclusion of dairy in recent FTAs and ongoing geopolitical tensions indicate a complex trade landscape that New Zealand will have to navigate strategically.