India, New Zealand relaunch free trade talks 

INDIA –  India and New Zealand have announced the resumption of the free trade agreement (FTA) negotiations after a 10-year pause, signaling a renewed push to strengthen economic ties. 

The decision was made public following a meeting between New Zealand’s Trade Minister Todd McClay and India’s Commerce Minister Piyush Goyal, according to a Ministry of Commerce and Industry statement. 

The announcement aligns with India’s goal to finalize trade deals with major economies like the United States and the European Union by the end of this year, as reported by the ministry.

The talks were relaunched as New Zealand Prime Minister Christopher Luxon arrived in India for a four-day visit, his first in his current role. 

Luxon, accompanied by a delegation of ministers, officials, and business leaders, is scheduled to meet Indian Prime Minister Narendra Modi to discuss deepening bilateral relations. 

“This milestone reflects a shared vision for a stronger economic partnership, fostering resilience and prosperity,” the Ministry of Commerce and Industry stated. 

A report by the Global Trade and Research Institute (GTRI) noted that past negotiations stalled over New Zealand’s push for greater access to India’s heavily protected dairy market and India’s demand for better opportunities for its skilled professionals in New Zealand.

Commerce Minister Piyush Goyal expressed optimism about the renewed effort, saying, “The India-New Zealand FTA will enhance supply chain integration and open new avenues for trade.” 

Trade experts, however, caution that challenges remain. New Zealand’s low import tariffs, averaging 2.3% with over half its tariff lines duty-free, contrast sharply with India’s 17.8 percent average, making significant tariff cuts a tough ask for India. 

Meanwhile, India seeks easier movement for its IT and services workforce, a point of contention in earlier talks. 

“India wanted work opportunities similar to those New Zealand offers Australia and China, but no agreement was reached,” a GTRI analyst explained.

India’s exports to New Zealand, valued at US$72.8 million for clothing and textiles, US$67.5 million for medicines, and US$52.2 million for refined petroleum, reflect a diverse trade basket.

New Zealand, in turn, exports agricultural goods like apples worth US$22.6 million and kiwifruit at US$6.6 million to India, though dairy exports remain limited at US$0.57 million due to India’s protective stance. 

Luxon highlighted the potential for growth, stating, “Our countries share a strong foundation, and this visit is about building a future of mutual prosperity.”

The relaunch comes as India juggles multiple trade negotiations, including with Australia and the ASEAN bloc. 

With Luxon’s visit setting the stage, both nations aim to navigate longstanding hurdles and unlock new economic opportunities.