New Zealand Parliament passes India Free Trade Agreement Bill, tariffs on 95% of exports to fall

New Zealand’s Parliament has approved the country’s free trade agreement with India paving the way for massive tariff reductions for New Zealand exports to India.

Side by side the opposition Labour party voted for the bill, and it won by 93-29 votes. The deal will drop tariffs on exports from New Zealand to India on around 95% of New Zealand’s exports either completely or drastically, the seems concluded. Over half the products included in the deal are set to be duty free from the day it constitutes.

The positive impact on exports was touted by New Zealand Trade Minister Todd McClay as “immediate and substantial”, and the government hopes the agreement can come into force later this year.

The deal includes duty-free access to New Zealand for all India exports as well. Wellington has also promised India an additional NZ$20 billion to investing over the next 15 years.

The trade deal, originally signed by India and New Zealand in April, has been in place since then. The agreement is looking to boost bilateral trade through increased market access and develop bilateral investment.

Two-way trade between India and New Zealand valued at NZ$3.99 billion in 12 months to June 2026. India is New Zealand’s No.9 market for goods & services exports.

The agreement will effectively apply once both countries have finished their ratification processes.