India and New Zealand began negotiating the Integrated Economic Cooperation Agreement (CECA) in April 2010 to promote trade in goods, services and investments, but after nine rounds of discussions, negotiations stalled. The ninth round of negotiations was held in 2013.
The two countries announced negotiations for a comprehensive and mutually beneficial India-New Zealand Free Trade Agreement (FTA) announcement ahead of a bilateral meeting between Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon.
Luxon began a four-day visit on March 16.
“India-New York New Zealand FTA negotiations are designed to achieve balanced outcomes to enhance supply chain convergence and improve market access,” the Ministry of Commerce and Industry said in a statement on Sunday.
This important step is marked by the meetings of Business and Industry Minister Piyush Goyal and New Zealand Minister of Trade and Investment Todd McClay.
“As bilateral trade continues to grow steadily, in the $100 million between April and February 2025, the FTA negotiations aim to lift new avenues for businesses and consumers, thereby promoting mutual growth and prosperity in our country,” Goyal said in an article on X.
Dairy product issues
India exported goods to New Zealand in the April-125 fiscal year to $494.4 million, with pharmaceuticals, nuclear reactors, boilers and textile items being key products, while imported products were $463.07 million. Fruits and nuts, fossil fuels and oils, wood and items, iron and steel, and machinery are the highest imports.
New Zealand is a major exporter of dairy products and has been paying attention to selling milk powder and dairy products in India, which New Delhi opposes. The domestic dairy industry is concerned that India will be forced to enter its markets if dairy is covered in trade agreements.
India and New Zealand were part of the Regional Integrated Economic Partnership (RCEP), and after New Delhi’s focus on a high trade deficit with China remained unmet, it withdrew in 2019 after it remained unmet.
