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Home Business & Finance Economic Policies

India-New Zealand FTA talks back on track after 10 years todayheadline

March 16, 2025
in Economic Policies
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New Delhi: India and New Zealand on Sunday announced the resumption of negotiations for a proposed free trade agreement, after it was stalled in 2015 following their failure to narrow differences in sensitive areas including dairy and agriculture.

India and New Zealand began negotiating the Comprehensive Economic Cooperation Agreement (CECA) in April 2010 to boost trade in goods, services, and investment but the talks stalled after nine rounds of discussions. The ninth round of negotiation was held in 2013.

The two nations announced the launch of negotiations for a comprehensive and mutually beneficial India-New Zealand Free Trade Agreement (FTA) on the eve of the bilateral meeting between the Prime Minister Narendra Modi and Christopher Luxon, Prime Minister of New Zealand.

ET Bureau

Luxon is here on a four-day visit from March 16.

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“The India-New Zealand FTA negotiations aim to achieve balanced outcomes that enhance supply chain integration and improve market access,” the commerce and industry ministry said in a statement Sunday, adding that both countries have continuously worked towards building their bilateral relationship encompassing trade and investment.

This significant step was marked by a meeting between commerce and industry minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay.

“With bilateral trade continuing to grow steadily, surpassing $1 billion during April-January 2025, the FTA negotiations aim to unlock new avenues for businesses and consumers, fostering mutual growth and prosperity of our nations,” Goyal said in a post on X.

Dairy concerns
India’s goods exports to New Zealand in April-December FY25 were $494.44 million with pharmaceuticals, nuclear reactors and boilers and textiles articles being the key products while imports were $463.07 million. Fruit and nuts, mineral fuels and oils, wood and articles, iron and steel, and machinery were the top imports.

New Zealand is a major exporter of dairy products and had been eyeing India to sell milk powder and dairy products, something that New Delhi has opposed. The domestic dairy industry feared that if dairy products are covered in a trade pact, India would be forced grant greater access to its market.

India and New Zealand were part of Regional Comprehensive Economic Partnership (RCEP) which New Delhi exited in 2019 after its concerns around high trade deficit with China remained unmet despite entering negotiations in 2013.

Tags: bilateral tradeComprehensive Economic Cooperation Agreementfree trade agreementFTAIndia-New Zealand FTAIndiaNewPiyush GoyaltalkstodayheadlinetrackYearsZealand
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