New Zealand, India to sign FTA today; tariffs to go on all exports, Pg1

Key Highlights:

• India and New Zealand are set to sign a Free Trade Agreement (FTA) on April 27, 2026, eliminating tariffs on 100% of India's exports to New Zealand.
• The FTA will significantly reduce or remove tariffs on 95% of New Zealand's current imports to India.
• In the fiscal year 2024-25, India's exports to New Zealand increased by 32.1% to $711.1 million, while imports from New Zealand rose by 75.2% to $587.1 million.
• The agreement grants India immediate duty-free access on all tariff lines, a reduction from the existing 10% tariff on approximately 450 Indian export tariff lines.

Detailed Insights:

• The India-New Zealand FTA negotiations were completed in a remarkably short timeframe, initiated in March 2025 and finalized by December 2025.
• Prior to the agreement, New Zealand imposed an average tariff of 2.2% on imports, which will now be eliminated, enhancing the competitiveness of Indian goods.
• India has strategically excluded sensitive items from the FTA, including dairy products, specific animal and vegetable products, sugar, and certain metals, to protect domestic industries.
• The FTA is expected to boost bilateral trade, strengthen economic ties, and foster sustainable economic growth for both India and New Zealand.

Key Concepts Involved:

• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers such as tariffs and quotas.
• Tariff: A tax or duty imposed on goods when they are transported across international borders.

New Zealand