Negotiations between India and New Zealand on a proposed free trade agreement are likely to be wrapped up soon, Commerce Secretary Rajesh Agrawal said on Monday, signalling progress after multiple rounds of discussions at both official and ministerial levels, PTI reported.“We are in a good zone where we hope that the agreement will be closed and finalised soon… It is expected to be done soon,” Agrawal told reporters, following the conclusion of the fourth round of talks.
The negotiations, formally launched on March 16, 2025, have gathered pace in recent weeks, with both virtual and in-person meetings held to bridge remaining gaps. Last week, New Zealand’s Trade Minister Todd McClay visited India to review the progress of discussions with Commerce and Industry Minister Piyush Goyal.Bilateral merchandise trade between the two countries stood at $1.3 billion in 2024-25, marking a growth of nearly 49 per cent over the previous year. Officials on both sides expect the proposed agreement to further boost trade flows, deepen investment linkages, strengthen supply-chain resilience and provide a predictable framework for businesses.New Zealand currently has a relatively open tariff regime, with its average import duty at 2.3 per cent, which could support faster market access once the pact is concluded.A free trade agreement typically involves a substantial reduction or elimination of customs duties on a broad range of traded goods, along with eased norms to promote trade in services and investment.India and New Zealand had earlier initiated talks on a Comprehensive Economic Cooperation Agreement (CECA) in April 2010 to enhance trade in goods, services and investment. However, after nine rounds of negotiations, discussions stalled in 2015.India’s key exports to New Zealand include clothing, fabrics and home textiles; pharmaceuticals and medical supplies; refined petroleum products; agricultural machinery such as tractors and irrigation equipment; automobiles; iron and steel; paper products; electronics; shrimps; diamonds; and basmati rice.New Zealand’s major exports to India comprise agricultural products and minerals, including apples, kiwifruit, lamb and mutton, milk albumin, lactose syrup, coking coal, logs and sawn timber, wool and scrap metals.
