India and New Zealand sign free trade agreement
AP News • • world
Key Points:
- India and New Zealand signed a free trade agreement aimed at deepening economic ties and expanding market access amid global trade disruptions, with the deal negotiated over nine months and agreed upon in December.
- The agreement will cut or eliminate tariffs on 95% of New Zealand’s exports to India, while all Indian exports to New Zealand will be duty-free, and New Zealand has committed to investing $20 billion in India over the next 15 years.
- The deal is part of India’s strategy to diversify export markets amid U.S. tariffs and geopolitical instability, and New Zealand’s effort to reduce reliance on China as its largest trading partner.
- Key Indian sectors to benefit include textiles, engineering goods, leather, and marine products, while New Zealand expects increased exports in horticulture, timber, coal, wool, and meat; however, India has excluded dairy and some agricultural products to protect its farmers.
- The agreement requires parliamentary ratification in New Zealand and is expected to pass with bipartisan support, despite some coalition resistance.
