New Zealand Prime Minister says looking forward to the ink FTA with India within 60 days

New Zealand Prime Minister Christopher Luxon presents India – New Zealand CEO Roundtable and Economic Forum on March 18, 2025 | Photo source: ANI

New Zealand Prime Minister Christopher Luxon said on Tuesday (March 18, 2025) that he is looking forward to signing a free trade agreement with India within 60 days, a move that is expected to increase bilateral trade 10 times within a decade.

After about a decade of gap, India and New Zealand announced on Sunday the resumption of negotiations on the proposed free trade agreement to boost economic relations.

Commerce Minister Piyush Goyal said it would be a “comprehensive integrated economic partnership” agreement between India and New Zealand.

The New Zealand Prime Minister began a four-day visit in India starting on March 16.

“Let’s push this relationship forward, and I look forward to Prime Minister Modi signing the agreement within 60 days,” Luxen said.

According to trade experts, the tricky point in the negotiation is the duty discounts for agricultural products such as apples, kiwis, dairy and wine.

“I can tell you that there is a possibility of 10 times growth in the next 10 years,” Goyal said.

“…If we work in the spirit of a free economy… there is almost nothing we compete with each other, and those few areas of sensitivity we can easily navigate or respect each other because each country has a different level of development.”

Regarding dairy products are a key point between the two countries, New Zealand Trade Minister Todd McClay said: “I think there are a lot of opportunities for us to grow trade. One of the most important things we have to do is respect our negotiators.” When asked about ongoing deal negotiations with various countries including the United States, Goyal said: “Every time of engagement stands on one’s own legs, every time of participation will bring good results for the interests of India, for the benefit of the people and businesses of India, and also our partners, for the benefit of India.” Mr Goyal responded to the 60-day FTA schedule comments from the Prime Minister of New Zealand, “We are very ambitious. I don’t think anyone thinks we can reach an agreement in the UAE in 90 days. So we are a friend of two aspirations working together in a spirit of cooperation, with each other’s sensitivity, and we will do it equally quickly.”

“It may be faster, but I also always say that no one’s gun is not negotiating with guns. Never timetables or dates of death are sacred, but it’s nice to have an aspiring way”.

India and New Zealand began negotiations on the Integrated Economic Cooperation Agreement (CECA) in April 2010 to promote trade in goods, services and investments. However, after nine rounds of discussion, negotiations stagnated in 2015.

According to the think tank Global Trade Research Program (GTRI), the proposed FTA of India and New Zealand has limited benefits for domestic companies because they have enjoyed the improper three tax on a large number of goods.

It said New Zealand’s average import tariffs were only 2.3 per cent, compared with India’s 17.8 per cent.

Bilateral trade between the two countries was US$873.4 million in 2023-24 (exports of US$538.33 million and imports of US$335 million) compared with US$1.02 billion in 2022-23.

GTRI reports that 58.3% of New Zealand’s tariff lines (or product categories) are tax-free, meaning Indian products already have great access to the New Zealand market without a trade agreement.

With over 250,000 Indians, New Zealand’s Indian diaspora provides strong cultural ties that can be used to strengthen trade relations.

India’s exports to New Zealand include clothing, fabrics and home textiles; pharmaceuticals and medical supplies; refined petrol; agricultural equipment and machinery such as tractors and irrigation tools; automobiles; iron and steel; paper products; electronics; shrimp; diamonds; and basmati rice.

Mainly imported are agricultural supplies, minerals, apples, kiwis, meat products such as lamb, lamb, milk albumin, lactose syrup, gel coal, logs and serrated wood, wool, wool and scratched metal.