New Zealand Parliament clears India FTA, tariffs to fall on most exports

New Zealand's parliament on Wednesday approved legislation to bring its free trade agreement with India into effect, clearing a key domestic hurdle for a pact signed by the two countries in April.

The measure passed by 93 votes to 29, drawing support from the opposition Labour Party alongside the governing side.

Under the agreement, tariffs on roughly 95% of New Zealand's exports to India will be eliminated or substantially reduced. More than half of the products covered are set to become duty-free as soon as the deal takes effect.

Indian goods, meanwhile, will enter New Zealand free of duty.

Trade Minister Todd McClay described the gains for exporters as immediate and substantial, and said the government expects the agreement to enter into force this year, fulfilling its commitment to conclude an FTA with India during its term.

Wellington has also committed to invest $20 billion in India over the next 15 years as part of the arrangement.

Two-way trade between the countries stood at NZ$3.99 billion ($2.29 billion) in the year to June 2026, with India serving as New Zealand's ninth-largest market for goods and services exports.

The agreement will take effect once both countries complete their respective ratification procedures.