New Zealand Parliament Passes Free Trade Agreement With India

The New Zealand Parliament passed legislation on September 16, 2026, to implement a free trade agreement (FTA) with India in a 93-29 vote. Originally signed on April 27, the pact is expected to enter into force as early as October 19, following the completion of ratification procedures in both nations.

Under the terms of the agreement, New Zealand will provide 100 percent duty-free access for Indian exports, removing tariffs on items such as automobiles, ceramics, and carpets. In return, India will eliminate or reduce tariffs on approximately 95 percent of New Zealand exports. Specifically, 57 percent of these exports will become duty-free immediately upon the agreement's effective date, eventually rising to 82 percent. Key beneficiaries include the kiwifruit industry, which is projected to save NZ$125 million in tariffs over five years, as well as the forestry, wool, and sheep meat sectors.

Beyond trade, New Zealand has committed to investing USD 20 billion in India over the next 15 years. The deal also establishes new mobility pathways, including a Temporary Employment Entry visa for 5,000 skilled Indians and 1,000 annual Working Holiday visas. Prime Minister Christopher Luxon and Indian Prime Minister Narendra Modi have set a shared goal to double two-way trade between the two countries by 2030.