New Zealand Parliament Passes India Trade Deal, Tariffs to Fall on 95% of Exports

New Zealand’s Parliament has passed legislation to implement the country’s Free Trade Agreement (FTA) with India, paving the way for lower tariffs and expanded trade between the two countries.

The legislation was approved by a vote of 93-29 on September 16, 2026, with support from the opposition Labour Party. New Zealand Trade Minister Todd McClay welcomed the passage, saying the agreement would provide immediate benefits for exporters. The deal is expected to take effect after both countries complete their respective domestic processes.

Tariff Reductions for New Zealand Exports

Under the agreement, tariffs on about 95 per cent of New Zealand’s exports to India will eventually be eliminated or significantly reduced. According to the New Zealand government, 57 per cent of New Zealand exports to India will become duty-free from the day the agreement enters into force, with further tariff reductions taking place under the agreement.

India will provide duty-free access to 100 per cent of its exports to New Zealand under the agreement, while India has retained exclusions and safeguards for several sensitive sectors, including dairy and certain agricultural products.

Investment Promotion Included

The agreement also contains an investment-promotion commitment under which New Zealand will aim to increase private-sector investment into India by US$20 billion over 15 years. The commitment is focused on promoting private investment rather than representing a direct government investment of US$20 billion.

Agreement Signed in April

India and New Zealand signed the trade agreement in New Delhi on April 27, 2026. The pact covers trade in goods and services as well as investment cooperation and other areas of economic engagement.

Two-way trade between the two countries stood at about US$2.29 billion in the year to June 2026, according to the figures cited in the report.

Implementation Process

The agreement will enter into force once India and New Zealand complete the required domestic procedures. New Zealand’s Parliament has now approved the legislation needed to implement the agreement on its side.

The FTA is expected to provide businesses in both countries with greater market access and a framework for deeper trade and investment ties as the agreement moves toward implementation.