New Zealand Prime Minister Christopher Luxon said on Thursday that 57% of the country's exports to India would receive duty-free access when the proposed India-New Zealand Free Trade Agreement comes into effect. The announcement was made a day before Prime Minister Narendra Modi is scheduled to arrive in Auckland for a two-day state visit.
In a post on X, Luxon said the agreement would allow 57% of New Zealand's exports to India to enter the market tariff-free from the first day of implementation. According to New Zealand officials, the agreement will eventually eliminate or reduce tariffs on 95% of the country's exports to India as it is phased in.
Products expected to receive immediate duty-free access include wood products, processed timber, wool and sheep meat. The agreement also provides improved market access for New Zealand kiwifruit, while India has agreed to open its market to apples and honey under a free trade agreement for the first time. Tariffs on manuka honey will also be reduced. The pact is expected to lower the cost of several imported products for Indian consumers over time.
The agreement also includes measures to simplify customs procedures, including faster digital processing and a commitment to clear perishable shipments within 24 hours where feasible.
The India-New Zealand Free Trade Agreement was signed in April and is expected to come into force after the completion of domestic ratification procedures in both countries. Under the agreement, Indian exports will also receive duty-free access to the New Zealand market. Officials from both countries have said the pact is intended to expand bilateral trade and strengthen economic cooperation.
Prime Minister Narendra Modi is expected to arrive in Auckland on Friday for the first visit by an Indian prime minister to New Zealand in nearly four decades. Discussions between Modi and Luxon are expected to cover trade, investment, defence, maritime security, education, technology, tourism and people-to-people ties, including engagement with the Indian diaspora and business leaders.