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New Zealand Prime Minister Christopher Luxon has described the Free Trade Agreement with India as a landmark deal, noting that it means more jobs, higher incomes and more exports from Indian markets.
"We said we'd secure a Free Trade Agreement with India in our first term, and we've delivered. This landmark deal means more jobs, higher incomes and more exports by opening the door to 1.4 billion Indian consumers. Fixing the Basics. Building the Future," the New Zealand Prime Minister said in a post on X. On December 22, India and New Zealand have concluded a comprehensive, balanced and forward-looking Free Trade Agreement (FTA), marking a major economic and strategic milestone in India's engagement with the Indo-Pacific region. The FTA stands out as one of India's fastest-concluded FTAs aligned with the national vision of Viksit Bharat 2047. The negotiations were formally launched on March 16, 2025 during the meeting between Minister of Commerce and Industry Piyush Goyal and Minister for Trade and Investment of New Zealand Todd McClay. The agreement was concluded by holding continuous and intense discussions spread over 5 formal negotiation rounds, several in-person and virtual intersessions. The FTA establishes a high-quality economic partnership that promotes employment, facilitates skill mobility, drives trade and investment-led growth, fosters innovation for agricultural productivity, and enhances MSME participation to strengthen long-term economic resilience. The FTA eliminates tariffs on 100 per cent of its tariff lines, providing duty-free access for all Indian exports. This market access enhances the competitiveness of India's labour-intensive sectors including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles, directly supporting Indian workers, artisans, women, youth and MSMEs and integrating them deeper into global value chains, according to the commerce ministry. The FTA delivers New Zealand's best and most ambitious services offer in any of its FTAs to date. India has secured commitments across a wide range of high-value sectors including IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services, opening substantial new opportunities for Indian service suppliers and high-skill employment, the commerce ministry had said. The FTA Opens Skilled Employment Pathways through a new Temporary Employment Entry Visa pathway for Indian professionals in skilled occupations, with a quota of 5,000 visas at any given time and a stay of up to three years. This pathway covers Indian professions such as AYUSH practitioners, yoga instructors, Indian chefs, and music teachers, as well as high-demand sectors including IT, engineering, healthcare, education, and construction, strengthening workforce mobility and services trade. Apart from tariff liberalisation, the FTA includes provisions to address non-tariff barriers through enhanced regulatory cooperation, transparency, and streamlined customs, Sanitary and Phyto-sanitary (SPS) measures and Technical Barriers to Trade disciplines. All systemic facilitations and fast-track mechanisms for imports that serve as inputs for our manufactured exports ensure that tariff concessions translate into effective and meaningful market access. India-New Zealand economic engagement has shown steady momentum. Bilateral merchandise trade reached USD 1.3 billion in 2024-25, while total trade in goods and services stood at approximately USD 2.4 billion in 2024, with services trade alone reaching USD 1.24 billion, led by travel, IT and business services. The FTA provides a stable and predictable framework to unlock the full potential of this relationship. (ANI)
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