Wellington [New Zealand], September 19 (ANI): The India-New Zealand Free Trade Agreement is likely to come into force within the next month, said New Zealand Trade and Investment Minister Todd McClay, as the two countries work on exchanging official notes to begin the process of implementing the pact.
In an interview with ANI, McClay said the agreement, which has cleared the New Zealand Parliament, would provide Indian exporters with duty-free access to the New Zealand market from the first day of implementation.
“We’re very close now. It passed in our Parliament with a significant majority — 93 votes to 26,” McClay said, adding that the two sides were now working on exchanging official notes to kick-start the process for the agreement to enter into force.
“You can expect that within the next month,” he told ANI.
The New Zealand Parliament approved the implementing legislation on September 15, with the official parliamentary record showing 93 votes in favour and 29 against. Royal assent was granted on September 17.
McClay said the agreement would create “a significant opportunity” for Indian exporters, with New Zealand committing to bring tariffs on Indian goods to zero from day one, subject to the agreement’s provisions.
“I think you will see a lot more trade in chemicals and pharmaceuticals, but also in machinery,” he said.
He also pointed to services, particularly information and communications technology, as an area where bilateral trade could expand.
The minister said New Zealand also expected greater access to the Indian market for its food, machinery, services and investment, describing the pact as a “win-win” for both economies.
“India and New Zealand have now made a commitment, and the two governments have said, ‘We trust each other. We will honour these commitments,” McClay said.
The FTA was signed in New Delhi on April 27, 2026, after negotiations between the two countries concluded in nine months. India has secured duty-free access for 100 per cent of its exports to New Zealand under the agreement.
On bilateral trade, McClay said Prime Minister Christopher Luxon and Prime Minister Narendra Modi had set an ambitious target of doubling two-way trade by 2030.
Bilateral trade currently stands at around NZ$4 billion, he said, adding that he believed the two countries could “surpass” the target under the new agreement.
New Zealand’s Ministry of Foreign Affairs and Trade has put the 2030 ambition at NZ$7 billion in two-way trade.
McClay also said the FTA could boost movement of people between the two countries, including students, professionals, tourists and business travellers.
He said New Zealand expected direct flights between India and New Zealand within about a year, which he believed would further strengthen people-to-people ties.
On what finally made the long-pending agreement possible, McClay attributed it to growing political and personal trust between the two sides.
“Fundamentally, it comes down to the friendship that has been formed,” he said, referring to the relationship between Modi and Luxon as well as his own ties with Commerce and Industry Minister Piyush Goyal.
“We decided we wanted to do the highest-quality agreement as quickly as we could… To be able to achieve that in nine months shows just how much trust has developed between our two countries,” McClay said.
Against the backdrop of rising tariffs and uncertainty in global trade, McClay said the India-New Zealand agreement demonstrated the value of predictable trade rules.
“It creates absolute certainty for our businesses, and it sends a signal that two countries like India and New Zealand respect the rules and know that trade rules are important,” he said.
He added that the agreement would create jobs and opportunities in both countries and could serve as an example for other economies. (ANI)
"India-NZ FTA likely to come into force within a month," says Trade Minister McClay
