On Wednesday, New Zealand’s parliament passed legislation to implement a free trade agreement with India, under which tariffs on about 95% of New Zealand’s exports to India will be eliminated or significantly reduced.
The bill was approved by a 93–29 vote, with support from the opposition Labour Party.
Over half of the products included will be exempt from duties starting on the very day the agreement comes into force.
“For exporters, the advantages are both immediate and significant,” New Zealand Trade Minister Todd McClay said in a statement.
We anticipate that this high-standard agreement will come into effect within this year, fulfilling our commitment to finalize a free trade pact with India during the current term.
Under the arrangement, all Indian products will be granted duty-free entry into New Zealand. In addition, Wellington has pledged to invest $20 billion in India over the next 15 years.
The two countries initially signed the trade agreement in April.
In the year to June 2026, two-way trade reached NZ $3.99 billion (US$2.29 billion), with India standing as New Zealand’s ninth-largest export market for goods and services.
The trade agreement will take effect once both countries have completed their respective ratification processes.
