New Zealand’s Parliament has passed legislation needed to implement its free trade agreement with India, clearing the final domestic step for the landmark trade pact. Prime Minister Christopher Luxon said the agreement would expand market access for New Zealand exporters and support jobs and incomes as both countries work to increase bilateral trade…reports Asian Lite News Desk
New Zealand Prime Minister Christopher Luxon on Wednesday welcomed Parliament’s approval of legislation required to implement the country’s free trade agreement with India, describing the pact as a landmark deal that will open access to 1.4 billion Indian consumers.
“People told me a Free Trade Agreement with India wasn’t possible. Well, today that deal passed its final vote in Parliament. It’s happening,” Luxon said in a post on X.
New Zealand’s Parliament passed the legislation by a vote of 93-29, completing the country’s domestic legislative process for implementing the agreement.
Luxon said the deal would allow more New Zealand products to be sold in India and contribute to economic growth.
“This landmark deal means more jobs, higher incomes for Kiwis. It means more New Zealand products being sold in India by opening the door to 1.4 billion Indian consumers,” he said.
The Prime Minister also said the agreement fulfilled a commitment made by his National Party to secure a free trade agreement with India during its first term in government.
“National said we said we’d secure a Free Trade Agreement with India in our first term, and we’ve delivered,” Luxon said.
New Zealand Trade and Investment Minister Todd McClay said the agreement would give exporters greater access to India, which he described as one of the world’s largest and fastest-growing economies.
Under the agreement, 57 per cent of New Zealand exports to India will become duty-free when the pact takes effect. Once fully implemented, tariffs will be removed or significantly reduced on 95 per cent of exports.
The agreement covers a broad range of New Zealand exports and is intended to improve market access for businesses seeking to expand their presence in India.
The kiwifruit industry is among the sectors expected to benefit from the tariff changes. McClay said the industry alone is expected to save about NZ$125 million in tariffs over five years.
The agreement is expected to enter into force later this year, subject to both countries completing their respective ratification procedures.
The FTA is also linked to a broader target agreed by Luxon and Indian Prime Minister Narendra Modi to double two-way trade between India and New Zealand by 2030.
The parliamentary approval marks an important step towards putting the trade agreement into effect, although its implementation remains dependent on completion of the required procedures in both countries.
For New Zealand, the pact is intended to provide exporters with improved access to India’s large consumer market and reduce tariff barriers on a substantial share of exports.
For India and New Zealand, the agreement represents a further development in their economic relationship and provides a framework for expanding trade between the two countries.
Luxon’s comments came after the legislation received its final parliamentary approval in Wellington, while the agreement awaits completion of the remaining procedures before entering into force.
The New Zealand government has highlighted increased market access, export opportunities and potential economic benefits as key outcomes of the agreement.
With the legislation now approved by Parliament, attention will turn to the remaining ratification steps in both countries before the FTA can take effect.
The agreement’s implementation will determine when the agreed tariff reductions and other market-access provisions begin applying to trade between India and New Zealand.
