New Zealand reported to have finalised trade deal with India
Officials from both nations have been in talks since March
[WELLINGTON] New Zealand has finalised a free-trade agreement (FTA) with India, local media, including BusinessDesk and Radio NZ reported, citing unidentified officials.
The accord follows Trade Minister Todd McClay’s recent trip to India, according to the reports. McClay and Prime Minister Christopher Luxon are due to hold a news conference later Monday (Dec 22) in Wellington.
India’s Business Standard reported on Saturday that Cabinet ministers had approved a deal, citing sources it said were aware of the matter.
Luxon made an FTA with India one of his government’s key ambitions after his 2023 election victory. Officials from both nations have been in talks since March after Luxon met with his Indian counterpart Narendra Modi in New Delhi. New Zealand’s efforts to secure better access to India’s huge market have foundered in the past, mainly as India wants to shield its dairy industry from imports.
In June, senior New Zealand foreign affairs official Vangelis Vitalis warned the talks would be challenging because India took a hardline approach on agricultural tariffs. He told a parliamentary committee that some of the levies represented “colossal barriers” and noted that India had never given access to dairy or apples in any of the agreements it had negotiated with other countries.
New Zealand exported NZ$804 million (S$600 million) of goods to India in the year ended September, making it just the nation’s 21st biggest customer.
While boosting shipments to India is a key aim of the FTA, there is also a focus on services, investment flows and other aspects of the partnership, such as pathways for Indians to study and work in New Zealand, BusinessDesk reported. BLOOMBERG
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