New Zealand’s Parliament passes legislation to implement its free trade agreement with India

New Zealand’s Parliament has passed legislation to implement its free trade agreement with India, paving the way for significant reductions in tariffs and expanded trade between the two countries.

The legislation was approved by a vote of 93-29, with support from the opposition Labour Party. New Zealand Trade Minister Todd McClay said the agreement would deliver “immediate and substantial” benefits for exporters. He said the high-quality trade deal is expected to enter into force later this year.

Under the agreement, tariffs on about 95 percent of New Zealand’s exports to India will be eliminated or significantly reduced. More than half of the products covered by the deal will become duty-free from the day the agreement enters into force.

All Indian goods will receive duty-free access to the New Zealand market. Wellington has also agreed to invest 20 billion US dollars in ​India over ​the next ⁠15 years.

The two countries originally signed the trade agreement in April. Two-way trade between New Zealand and India totalled 2.29 billion US dollars in the year to June 2026, with India ranking as New Zealand’s ninth-largest market for goods and services exports.

The agreement will take effect once both New Zealand and India complete their domestic ratification processes.