|
The
deal comes as New Delhi moves to diversify export markets to
offset the impact of steep tariffs imposed by the United States
and instability in shipping and energy routes due to the Iran
war. For New Zealand, the agreement is part of a broader push to
reduce reliance on China, its largest trading partner.
The agreement was signed in New Delhi by India’s Commerce and
Industry Minister Piyush Goyal and visiting New Zealand Trade
and Investment Minister Todd McClay.
Negotiated over nine months and agreed in December, the deal
will cut or eliminate tariffs on 95% of New Zealand’s exports to
India, while making all Indian exports to New Zealand duty-free.
Wellington has also committed to invest $20 billion in India
over the next 15 years.
McClay said the deal marked a “once-in-a-generation” opportunity
to deepen economic ties at a time of rising global trade
tensions and uncertainty. India is New Zealand’s 12th-largest
export market, with bilateral trade valued at $2.15 billion in
the year through June 2025, according to official data.
Goyal called the deal a “defining milestone” and said India and
New Zealand had “chosen each other” at a time ”when the world
economy is being recast.” He said the agreement offers market
access across sectors and creating frameworks for investment and
regulatory cooperation.
Indian sectors expected to see expanded market access include
textiles and apparel, engineering goods, leather and footwear,
and marine products. New Zealand is likely to register increased
exports in horticulture, timber, coal, wool and meat.
India has excluded dairy and certain agricultural products from
the deal to protect its farming sector.
Indian exporters have been under pressure from higher U.S.
tariffs since August last year, particularly in labor-intensive
sectors such as textiles, auto components and metals, even as
New Delhi continues negotiations with Washington on a separate
bilateral agreement.
New Zealand’s trade deals are usually bipartisan. The agreement
now requires ratification by parliament and is expected to pass
after the opposition New Zealand Labour Party backed it, despite
resistance from coalition partner and populist minor party New
Zealand First.
——
Graham-McLay reported from Wellington, New Zealand.
All contents © copyright 2026 Associated Press. All rights reserved
|
|
