India-New Zealand free trade pact to come into force on October 20
- India and New Zealand's FTA, effective October 20, will eliminate tariffs on 95% of NZ exports and provide duty-free access for Indian goods
NEW DELHI: A free trade agreement between India and New Zealand, signed in April, will come into force on October 20, Indian trade minister Piyush Goyal said on Monday, as New Delhi seeks to boost exports and attract investment amid shifts in global trade.
The deal with New Zealand comes at a time when U.S. President Donald Trump has signed a law that gives him authority to impose up to 100% tariffs on countries such as India for buying Russian oil.
India has accelerated efforts to diversify export markets away from the U.S., which is its biggest destination so far, through a series of trade agreements with major economies, including Britain and the European Union.
New Zealand’s parliament last week passed legislation to implement the free trade agreement with India, under which tariffs on about 95% of New Zealand’s exports to India, including wine, kiwi fruit and apples would be eliminated or significantly reduced.
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The agreement will give all Indian goods duty-free access to New Zealand and ease mobility rules for students and workers. Wellington has also agreed to invest $20 billion in India over the next 15 years.
New Zealand Prime Minister Christopher Luxon and Indian Prime Minister Narendra Modi have committed to doubling bilateral trade by 2030, which stood at about $2.3 billion in the 12 months through June.
“At a time when there is uncertainty around the world in trade, we see tariff rates escalating, we see barriers being put up, India and New Zealand show that we can agree to terms that are beneficial for trade and businesses,” New Zealand Trade Minister Todd McClay said via video conference at the event announcing the ratification of the treaty.
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India said last week that the new measures to levy tariffs over the purchase of Russian oil could impact bilateral ties with the United States, in a sharp response to the passing of the law.
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