India and New Zealand sign trade agreement

New Zealand and India signed a free trade agreement on April 27 that will reduce or eliminate border tariffs on goods.

For New Zealand, tariffs on more than half of its exports will be eliminated immediately upon entry into force, and 80% of goods will become duty-free after the agreement is fully phased in, reports Just Food.

The agreement will allow Indian companies to import ingredients duty-free for use in the production of export products.

“As India seeks to become a ‘global food hub’ for food processing, this agreement aims to create new opportunities for New Zealand businesses, particularly agricultural businesses, including dairy exporters, to gain a foothold in the supply chain for India’s growing food manufacturing sector,” the trade ministry said.

The New Zealand government said average tariffs on goods imported into India would be slashed to 3%. This would save NZ$43 million (about $25 million) in tariffs immediately, and is likely to grow to NZ$62 million ($36.5 million) based on current trade volumes.

The current 150% tariff on New Zealand wine will be reduced by 66-83% over a decade to around 25-50%.

The 33% tariff on New Zealand baby food and other dairy-based foods will be eliminated within 7 years.

Duties on New Zealand lamb will be reduced from 33% to 0% from day one of the deal.

The same 33% tariff currently applied to fish and seafood will also be eliminated within 7 years.

In addition, over 5 years, tariffs on honey from New Zealand will be reduced from 66% to 16.5% for products worth $30/kg or more. The same tariff rate will apply to honey products worth $20-$30/kg in volumes up to 200 tonnes.

New Zealand’s exports of horticultural products, including apples and kiwis, will receive new quotas. Tariffs will also be phased out for cherries and avocados.

The text of the agreement must now be “legally reviewed and prepared for signing.”

New Zealand exported NZ$2.03 billion worth of products to India in 2025. India shipped NZ$1.3 billion worth of products to New Zealand last year.

Tags: India, New Zealand