India-New Zealand FTA

India-New Zealand FTA Latest News

India and New Zealand recently launched negotiations for a comprehensive and mutually beneficial Free Trade Agreement (FTA), aiming to strengthen economic ties and enhance market access.

What is a Free Trade Agreement (FTA)?

• Definition: An FTA is a trade pact between two or more countries that aims to reduce or eliminate trade barriers, such as tariffs, import/export restrictions, and non-tariff barriers.
• Key Features:
  • Covers trade in goods (agriculture & industry) and services (banking, IT, construction, etc.).
  • Advanced FTAs also include investment, intellectual property rights (IPRs), government procurement, and competition policies.

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Types of Trade Agreements

• Partial Scope Agreement (PSA): Focuses on a limited number of goods.
• Free Trade Agreement (FTA): Eliminates/reduces tariffs between member countries but retains independent external tariff policies for non-members.
• Customs Union: Members follow a common external tariff for non-members.
• Common Market: Allows free movement of goods, services, and production factors (labour & capital).
• Economic Union: Coordinates macroeconomic and exchange rate policies among member nations.

India-New Zealand Trade Relations

• This marks India’s second bilateral trade agreement in Oceania, following the India- Australia FTA in April 2022.
• Trade Growth: In 2023-24, India exported $538 million worth of goods to New Zealand and imported $335 million, creating a trade surplus of $203 million.
  • Bilateral trade surpassed $1 billion during April-January 2025, indicating steady growth.
  • In 2024-25 (up to December 31):
    • Indian exports to New Zealand grew by 21.49% to $496 million.
    • Imports surged by 78.72% to $463 million, narrowing the trade surplus to $33 million.

India-New Zealand FTA FAQs

Q1. Does NZ have a free trade agreement with India?

Ans. No, India and New Zealand are currently negotiating an FTA, but it has not been finalized yet.

Q2. Which country has FTA with India?

Ans. India has FTAs with countries like Japan, South Korea, UAE, and ASEAN nations, among others.

Q3. What can be exported from India to New Zealand?

Ans. India exports pharmaceuticals, machinery, textiles, and agricultural products to New Zealand.

Q4. What countries does NZ have FTA with?

Ans. New Zealand has FTAs with Australia, China, ASEAN, South Korea, and the CPTPP member countries.

Source: HT