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India-New Zealand FTA agreement announcement likely this year
India and New Zealand are expected to formally announce the conclusion of a bilateral free trade agreement before the current calendar year ends, which will make it the third FTA in 2025 after pacts with the United Kingdom in July and Oman on December 18, people familiar with the matter said.
The two sides have achieved convergence on almost all points through prolonged physical and virtual interactions after the fourth formal round of negotiations that took place in Rotorua early last month during Union commerce minister Piyush Goyal's New Zealand visit, they said, requesting anonymity.
A draft agreement is ready and an announcement of the proposed FTA is expected early this week, they said. New Zealand's trade and investment minister, Todd McClay, who was in New Delhi on December 12, met Goyal to explore ways to advance the FTA negotiations, they added.
The deal is expected to be comprehensive and balanced, ensuring mutual gains for both parties while respecting sensitivities of the two sides, they said. According to them, India will continue to protect its substance farmers and dairy sector. It may, however, give some concessions on non-competing items such as kiwi fruits and timber.
It is also expected that the agreement may help India to supply its goods such as organic products and pharmaceutical items and professional services to New Zealand through mutual recognition agreements (MRAs). MRAs are the mechanism in FTAs that help the two partners to recognise their professional qualifications and quality standards.
People mentioned above said the third FTA in 2025 will help Indian exporters in trade diversification and reduce dependence on any particular geography. They, however, declined to give any specific detail related to the nature and the scope of the proposed FTA. It will, however, be announced in the spirit of reducing trade barriers and promoting a more conducive bilateral environment for businesses and investments, they said.
India's bilateral merchandise trade with New Zealand stood at $1.3 billion in 2024-25, marking a year-on-year growth of nearly 49%, according to a commerce ministry's statement issued on November 8. The proposed FTA is expected to unlock further potential in sectors such as agriculture, food processing, renewable energy, pharmaceuticals, education, and services, creating new opportunities for businesses and consumers alike, it said.
The India-New Zealand FTA quickly completed four rounds of formal negotiations since the launch of the FTA discussions on March 16, 2025. That day, they affirmed that the India-New Zealand FTA negotiations aimed to achieve balanced outcomes that would enhance supply chain integration and improve market access.
India-New Zealand FTA discussions have been built on the renewed momentum in bilateral relations after Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon met during the latter's' five-day India visit from March 16-20, 2025. According to a joint statement of March 17, the two PMs “welcomed the launch of FTA negotiations for a balanced, ambitious, comprehensive, and mutually beneficial trade agreement” to achieve deeper economic integration.
“The Leaders agreed that a comprehensive trade agreement offers a significant opportunity to enhance trade and economic cooperation. By leveraging each country's strengths, addressing their respective concerns, and tackling challenges, a bilateral trade agreement can foster mutually beneficial trade and investment growth, ensuring equitable gains and complementarities for both sides,” it said. They also agreed to explore cooperation in the digital payments sector.
Source: HindustanTimes
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