New Delhi: The India-New Zealand Free Trade Agreement (FTA) is expected to come into force within the next month, New Zealand’s Minister for Trade and Investment Todd McClay said on Friday after the country’s Parliament passed the pact.
In an interview with IANS, McClay said the FTA received strong bipartisan support in New Zealand’s Parliament, with 93 lawmakers voting in favour and 26 against.
“The next stage is that we will sign it into law and exchange diplomatic notes with India when they are able to do the same. Then the clock starts ticking for the agreement to enter into force,” McClay said.
“I think we can expect that within the next month,” he added.
Moreover, the minister described the agreement as one of the best trade agreements negotiated by New Zealand and India and said it could significantly boost two-way trade.
New Zealand Prime Minister Christopher Luxon and Prime Minister Narendra Modi have committed to doubling bilateral trade by 2030, he noted.
“I think that is more than possible now,” McClay said.
The minister said New Zealand businesses were already preparing to tap opportunities in India, with companies travelling to India and Indian business delegations visiting New Zealand to establish commercial partnerships.
Food exports, Indian manufactured goods and services are among the key areas expected to benefit from the agreement, according to McClay.
For New Zealand, he identified high-quality food exports as a major opportunity, particularly horticulture, meat and other products, amid growing demand in the Indian market.
On the other hand, he said Indian manufactured goods, pharmaceuticals and machinery would benefit from greater access to New Zealand.
“On day one, every single tariff rate goes to zero for India exporting to New Zealand. So that’s a win,” McClay said.
Services, including tourism and IT services, are another area where he expects significant growth, saying the sector could generate high-paying jobs in both countries.
The minister also said the FTA would provide greater certainty to businesses amid changes in global tariff policies, particularly those affecting India and New Zealand.
“It gives our businesses and our exporters certainty,” McClay said.
He said the agreement would provide greater predictability for Indian companies looking to invest in New Zealand and for New Zealand businesses seeking opportunities in India.
“We will see partnerships grow. We will see both India and New Zealand respecting the rules, and that certainty will mean greater opportunities for businesses,” he said.
McClay also pointed to the potential for stronger cooperation in agriculture, saying New Zealand could share advanced technology and innovation with India to help increase farmers’ earnings.
He said energy security, particularly renewable energy, was another area with scope for greater bilateral cooperation.
The minister said the trade agreement was only the beginning of New Zealand’s broader effort to deepen its relationship with India, noting that the two countries had also signed cooperation agreements in areas including security.
“The trade agreement is only a start of the effort, focus and investment that the New Zealand Government wants to make in our relationship with India,” he said.
Asked about his plans to visit India, McClay said New Zealand’s upcoming election was the immediate priority and that he hoped to visit India before the end of the year after the election.
(IANS)
