Negotiations on the Free Trade Agreement (FTA) between India and New Zealand are finished. In spite of this, the agreement has been criticized by the New Zealand Government itself.
Foreign Minister Raises Objections
- Winston Peters, the Foreign Minister of New Zealand, was unhappy with this proposed FTA. He posted a message on the micro-blogging site, X, saying that the proposed FTA does not look ‘free and fair’ to him, adding that it may even affect his country and provide little advantage.
- As reported by Peters, “New Zealand is making big concessions without getting an equal trade deal in India. A big concern is the Indian government's refusal to allow access to its dairy market.” He emphasized that his party is always supportive of “good relations between New Zealand and India. However, agreements must be of clear benefit to New Zealand's people. The Government must reassess these agreements.”
Details of the Trade Agreement
- The FTA was announced by Indian Prime Minister Narendra Modi and Prime Minister of New Zealand, Christopher Luxon, on Monday. The agreement will officially be signed in the first half of 2026.
- According to the terms, New Zealand is expected to invest $20 billion, roughly ₹1.8 lakh crores, in India over the next 15 years. India is also expected to lower or waive customs tariffs on 95 percent of the commodities imported from New Zealand. The commodities include wool, coal, timber, wine, avocados, and blueberries.
Protected Sectors are Still Excluded
In order to protect its interests, India has not granted any tariff concessions on the following products:
- Dairy products
- Sugar
- Spices
- Oils
- Rubber
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