The Free Trade Agreement (FTA) between India and New Zealand is likely to come into effect by the end of the year, New Zealand’s Minister for Trade and Investment, Todd McClay, said on Tuesday.
Speaking to ANI, McClay said both governments are keen to bring the agreement into force at the earliest. The pact has already cleared its first reading in the New Zealand Parliament with 93 votes in favour and 26 against, and is currently undergoing the country’s legislative process.
“I think both governments would like the agreement to enter into force before the end of the year. It is a trade agreement worth celebrating. Businesses in both countries will benefit very quickly because of the high quality of the agreement and the negotiations. We’re aiming towards the end of the year, but the bottom line is as quickly as we can get it enforced, it will be good for India and New Zealand,” McClay said.
The Minister said Prime Minister Narendra Modi’s recent visit to New Zealand marked a significant milestone in bilateral ties, with both sides signing 16 declarations. Among them, the elevation of India-New Zealand relations to a Strategic Partnership was the most significant, covering cooperation in trade, economy, defence, security, science and technology, climate change, disaster resilience, and people-to-people exchanges.
McClay said the FTA provides for a dedicated priority desk to facilitate New Zealand investments in India and speed up approvals. He also said Air India and Air New Zealand are working towards securing the necessary clearances to launch direct flights within the next one to two years, which would strengthen business, tourism, and connectivity for the nearly 350,000-strong Indian diaspora in New Zealand.
Referring to the evolving geopolitical situation in West Asia, McClay said prolonged uncertainty has increased fuel and fertiliser prices, raising production and shipping costs globally. He, however, noted that the India-New Zealand trade agreement would help both countries build resilient supply chains and provide greater certainty for businesses.
“We would like the war to finish. We want certainty there. Certainly, Iran should not be allowed to develop nuclear weapons, but we think dialogue and discussion are the right way forward. Rising fuel prices have a detrimental effect on consumers and increase production costs,” he said.
He added that the agreement presents an opportunity for both countries to strengthen supply chains, improve shipping connectivity, establish direct air links, and reduce trade costs, enabling businesses in both nations to operate with greater confidence despite global uncertainties.
Looking ahead, McClay said the next phase of India-New Zealand cooperation will focus on critical minerals, security, advanced manufacturing, and space technology.
Highlighting the benefits of the agreement, McClay said Indian exports to New Zealand will enjoy zero-tariff access from the first day of the FTA’s implementation, benefiting sectors such as goods, services, agricultural machinery, automobiles, and chemicals. In return, up to 95 per cent of New Zealand’s exports to India will become tariff-free or attract significantly lower tariffs over the next seven to eight years. (ANI)
