New Zealand secures a free trade pact with India, eliminating tariffs on 95% of its exports, despite coalition partner criticism over immigration terms.
WELLINGTON: New Zealand has finalised a wide-ranging free trade agreement with India.
The deal eliminates tariffs on 95% of New Zealand’s exports to the Indian market.
Trade and Investment Minister Todd McClay (pic) said the pact, effective in the first half of next year, provides unprecedented access to 1.4 billion consumers.
“This once-in-a-generation agreement creates opportunities New Zealand exporters have never had in India,” McClay stated.
He added that it “will deliver thousands of jobs and billions in additional exports”.
The conservative National Party-led coalition fulfilled a 2024 election promise to secure a deal after the previous Labour government failed.
However, coalition partner New Zealand First leader Winston Peters criticised the agreement.
“Regrettably, this is a bad deal for New Zealand,” Peters warned.
He argued it “gives too much away, especially on immigration, and does not get enough in return for New Zealanders, including on dairy”.
The pact includes 1,667 temporary work visas annually for Indian ICT, engineering, and health service workers.
It also establishes a working holiday scheme for up to 1,000 people aged 18-30.
Indian students will be permitted to work up to 20 hours per week in New Zealand.
“New Zealand First urged its coalition partner not to rush into concluding a low-quality deal with India,” Peters said.
McClay countered that the agreement helps secure workers for the tourism and rural sectors.
“Trade grows the economy and creates jobs,” he added.
The minister said the NZ-India free-trade agreement is about future-proofing opportunities for exporters.
