Kiwis pass 'once-in-a-generation' India trade deal

New Zealand's parliament approved legislation on Wednesday to implement a landmark free trade agreement with India. This historic deal, which took over a decade to negotiate, eliminates or significantly reduces tariffs on approximately 95% of New Zealand's exports to India. The legislation received overwhelming support, passing with a vote of 93-29, including backing from the opposition Labour Party.

The agreement's impact will be immediate and substantial for New Zealand exporters. More than half of all products covered will become duty-free from the day the deal takes effect. New Zealand Trade Minister Todd McClay expressed optimism, stating, "We expect this high-quality agreement to enter into force this year, delivering on our promise to complete a free trade agreement with India this term."

Under the terms of the deal, all Indian goods will receive duty-free access to New Zealand. In return, New Zealand has committed to investing $20 billion in India over the next 15 years. It's worth noting that both nations signed the trade agreement in April, but the agreement will only become effective after both countries complete their respective ratification procedures.

Currently, two-way trade between the two countries totals NZ$3.99 billion ($2.29 billion) in the year to June 2026. India is currently New Zealand's ninth-largest market for goods and services exports.