India and New Zealand are expected to bring their free trade agreement into force within a month after Wellington’s Parliament approved the pact…report Asian Lite News Desk
The India-New Zealand Free Trade Agreement (FTA) is expected to come into force within the next month after New Zealand’s Parliament passed the pact, Trade and Investment Minister Todd McClay said in an interview with IANS.
McClay said the agreement received strong bipartisan support in Parliament, with 93 lawmakers voting in favour and 26 against. The next steps involve New Zealand signing the agreement into law and exchanging diplomatic notes with India once the Indian side completes its corresponding process.
“The next stage is that we will sign it into law and exchange diplomatic notes with India when they are able to do the same. Then the clock starts ticking for the agreement to enter into force,” McClay said.
“I think we can expect that within the next month,” he added.
McClay described the agreement as one of the best trade agreements negotiated by New Zealand and India and said it could significantly increase two way trade. New Zealand Prime Minister Christopher Luxon and Prime Minister Narendra Modi have committed to doubling bilateral trade by 2030.
“I think that is more than possible now,” McClay said.
The minister said businesses in both countries were already preparing to use opportunities created by the agreement. New Zealand companies have been travelling to India, while Indian business delegations have also been visiting New Zealand to explore commercial partnerships.
Food exports, Indian manufactured goods and services are among the sectors expected to benefit. For New Zealand, McClay highlighted opportunities for high quality food exports, particularly horticulture, meat and other products, as demand grows in the Indian market.
Indian exporters are expected to gain greater access to New Zealand for manufactured goods, pharmaceuticals and machinery.
“On day one, every single tariff rate goes to zero for India exporting to New Zealand. So that’s a win,” McClay said.
Services are another area where the minister expects growth, with tourism and IT services identified as sectors that could create opportunities and high paying jobs in both countries.
McClay also said the FTA would give businesses greater certainty at a time of changes in global tariff policies, including measures affecting India and New Zealand.
“It gives our businesses and our exporters certainty,” McClay said.
He said the agreement would offer greater predictability for Indian companies considering investment in New Zealand and New Zealand businesses seeking opportunities in India.
“We will see partnerships grow. We will see both India and New Zealand respecting the rules, and that certainty will mean greater opportunities for businesses,” he said.
Agriculture could also see stronger cooperation, with McClay pointing to opportunities for New Zealand to share technology and innovation with India to help increase farmers’ earnings.
Energy security, particularly renewable energy, was another area he identified for greater bilateral cooperation.
McClay said the trade agreement represented only the beginning of New Zealand’s wider efforts to deepen relations with India. The two countries have also signed cooperation agreements in areas including security.
“The trade agreement is only a start of the effort, focus and investment that the New Zealand Government wants to make in our relationship with India,” he said.
Asked about a possible visit to India, McClay said New Zealand’s upcoming election was the immediate priority. He said he hoped to travel to India before the end of the year after the election.
