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New Zealand's Minister for Trade and Investment Todd McClay has expressed confidence that the India-New Zealand Free Trade Agreement (FTA) will come into force before the end of the year, saying the landmark pact will pave the way for achieving the ambitious NZ 7 billion bilateral trade target by 2030 while also enabling direct air connectivity between the two countries within the next one to two years.
In an interview with ANI, McClay described the FTA as the "first and most important stepping stone" towards expanding economic ties, saying it would provide immediate benefits to Indian exporters through zero-duty market access. "The signing of the Free Trade Agreement between India and New Zealand is the first and most important stepping stone to increasing our bilateral two-way trade. Minister Piyush Goyal and I were able to negotiate this agreement in just nine months. On day one, it allows India to export anything it wants to New Zealand with a zero tariff rate," he said. He said the agreement would boost exports from India across goods and services, including agricultural machinery, automobiles and chemicals, while 90-95 per cent of New Zealand's exports would either become tariff-free immediately or see significant tariff reductions over the next seven to eight years. Highlighting improving connectivity, McClay said Air India and Air New Zealand have already agreed to cooperate. "We will see direct flights between India and New Zealand in the next year or two. Tourism will grow in both directions," he said. On the India- NZ FTA ratification process, the minister said the agreement has already cleared its first reading in the New Zealand Parliament with overwhelming support. "It passed its first reading vote by 93 votes to 26 and is now going through the formal process. Both governments would like the agreement to enter into force before the end of the year," he said. Reflecting on Prime Minister Narendra Modi's recent visit to New Zealand, McClay termed it a "historic success", noting that it was the first visit by an Indian Prime Minister to the country in 40 years. "It was a very successful visit. Sixteen declarations were signed, and the most significant is upgrading our relationship to a Strategic Partnership. We agreed to deepen cooperation in trade and economy, defence and security, science, climate change, sports and disaster resilience. It shows that the relationship between India and New Zealand is the strongest it has ever been," he said. Speaking on the newly announced Strategic Partnership, McClay said both countries have agreed to strengthen supply-chain resilience to safeguard trade and economic security. "We are both trading nations. If supply chains are disrupted, it impacts jobs, incomes and businesses. Therefore, we have agreed to focus on supply-chain resilience and build a stronger partnership between our two nations," he said. The minister also welcomed the establishment of a dedicated investment facilitation mechanism for New Zealand companies in India under the FTA. "For the first time, a priority desk for New Zealand investments has been established to ensure faster approvals in India. There is also growing interest among Indian companies to invest in New Zealand. Two-way investment will further strengthen the relationship," McClay told ANI. Commenting on the impact of the West Asia conflict, McClay said rising fuel prices remain a major concern but added that stronger bilateral cooperation could help both countries build more resilient supply chains. "We need to fix supply chains, work on direct air links and improve shipping services to reduce costs so that we can continue trading with each other," he said. On the US-Iran tensions, McClay said New Zealand supports diplomacy over conflict. "We would like the conflict to end. Iran should not be allowed to develop nuclear weapons, but dialogue and discussion are the right way forward. We hope the US and Iran, along with their allies, return to the negotiating table and find a lasting solution that keeps waterways open and enables trade," he said. Looking ahead, the minister identified deep technology, space and innovation as key areas for future collaboration. "Our deep-tech and high-tech industries are growing rapidly. New Zealand ranks third globally in satellite and rocket launches, and there is significant scope for cooperation with India in the space sector," he said. McClay also praised the contribution of the Indian diaspora, saying nearly 350,000 people of Indian origin have become an integral part of New Zealand's society while maintaining their cultural identity. "They have preserved their culture, heritage and history while also becoming proud New Zealanders. The Indian community has strongly welcomed the conclusion of the Free Trade Agreement negotiations," he said. (ANI)
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