India-New Zealand free trade pact to come into force on October 20

On October 20, India and New Zealand will begin a free trade agreement that was signed in April, according to Indian trade minister Piyush Goyal. The deal comes as India seeks to expand its exports and attract investment in the face of shifting global trade dynamics. The agreement coincides with U.S. President Donald Trump's signing of legislation that permits him to impose up to 100% tariffs on nations like India for acquiring Russian oil.

New Zealand's parliament recently approved legislation to implement the free trade agreement with India, which will eliminate or significantly reduce tariffs on approximately 95% of New Zealand's exports to India, including items like wine, kiwi fruit, and apples. India's August goods trade deficit narrowed as gold imports decreased.

Under the agreement, all Indian goods will enjoy duty-free access to New Zealand, and mobility rules for students and workers will be simplified. Wellington has also pledged to invest $20 billion in India over the next 15 years. New Zealand Prime Minister Christopher Luxon and Indian Prime Minister Narendra Modi have pledged to double bilateral trade by 2030, which stood at around $2.3 billion in the 12 months leading up to June.

New Zealand Trade Minister Todd McClay expressed his views on the matter via video conference, stating that during a period of global uncertainty in trade, where tariffs are escalating and barriers are being erected, India and New Zealand have agreed to terms that are advantageous for trade and businesses. India recently pointed out that the new measures to levy tariffs on the acquisition of Russian oil could potentially impact bilateral relations with the United States, in a firm reaction to the enactment of the law.