In statements released by New Delhi and Wellington on Monday, officials confirmed the signing and emphasized the strategic importance of the move amid uncertainty in global trade caused by the broad tariffs imposed by US President Donald Trump. Rising protectionist trends are pushing countries to diversify their trade networks through bilateral agreements.
Under the agreement, India will gain zero tariff access for all goods exported to New Zealand. According to officials, New Zealand will secure tariff reductions and market access for around 70 percent of India’s customs tariff lines. These arrangements are planned to gradually cover more than 95 percent of New Zealand’s exports to India.
New Zealand aims to expand exports of dairy products, fruit, wool and wine to the Indian market, with significant commercial gains expected particularly in horticulture, wood products and sheep wool.
For India, sectors expected to benefit most from duty free access to the New Zealand market include textiles and apparel, engineering products, leather and footwear, and seafood.
In a statement from India’s Ministry of Commerce and Industry, it was noted that New Zealand has committed to invest a total of USD 20 billion in India over the next 15 years. The agreement also includes provisions to facilitate easier access for skilled Indian professionals to New Zealand’s labor market.
Experts point out that uncertainty driven by the Trump administration’s trade policies is encouraging countries to pursue long term free trade agreements to reduce risks associated with high US import tariffs, as relying on the US market alone isnt seen as sustainable.
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