New Zealand’s Parliament has passed legislation to implement the country’s free trade agreement with India, clearing a major legislative step toward bringing the landmark pact into force.
The legislation was approved by 93 votes to 29, with support from the opposition Labour Party. The agreement, signed in New Delhi on April 27, 2026, is designed to significantly expand trade and investment between the two countries.
Tariffs to fall on most New Zealand exports
Under the agreement, tariffs will be eliminated or substantially reduced on about 95% of New Zealand exports to India. Almost 57% of New Zealand exports will receive duty-free access when the agreement initially takes effect, with the share expected to rise to about 82% as the agreement is fully implemented.
Products benefiting from improved access include sheep meat, wool, coal, forestry and wood products, seafood, industrial goods, mānuka honey, wine and selected fruit products. Some sensitive products will instead receive tariff reductions or quota-based access over several years.
Investment and services provisions
The agreement also contains commitments covering services, customs procedures, intellectual property, economic cooperation and the movement of certain Indian service providers and professionals for short-term stays.
New Zealand has also committed to promoting private-sector investment into India, with an ambition to facilitate US$20 billion in investment over 15 years.
Next step toward implementation
Parliament’s approval brings the agreement closer to taking effect, although the trade pact still requires the remaining domestic implementation steps. New Zealand’s legislation provides for the agreement to enter into force on a date set by an Order in Council.
The agreement marks a significant expansion of economic ties between New Zealand and India and is expected to give exporters in both countries greater access to each other’s markets.
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