New Zealand’s parliament on Wednesday (September 16, 2026) passed legislation to implement a free trade agreement (FTA) with India, under which tariffs on about 95% of New Zealand exports to India would be eliminated or significantly reduced.
The legislation passed by a vote of 93–29, with support from the opposition Labour Party.
More than half of all products covered would become duty-free from the day it takes effect.
“For exporters, the benefits are immediate and substantial. From day one, 57% of New Zealand’s exports to India will become duty-free,” New Zealand Trade Minister Todd McClay said in a statement.
“Once fully implemented, tariffs are eliminated or significantly reduced on 95 per cent of our exports. That means real savings and real opportunities. The kiwifruit industry alone expects to save around $125 million in tariffs over five years,” he added.
“Added to this are faster border clearance and preferential access to a fast-growing middle class that is demanding high-quality food, fibre, technology, education, tourism and professional services. The FTA is also future-proofed through most-favoured-nation commitments for wine and key services sectors.
“Negotiations were announced in March 2025, and we expect this high-quality agreement to enter into force this year, delivering on our promise to complete an FTA with India this term,” Mr McClay says.
Under the deal, all Indian goods will receive duty-free access to New Zealand. Wellington has also agreed to invest $20 billion in India over the next 15 years. Both nations originally signed the trade agreement in April.
“Exporters will be able to use this agreement to build new relationships, sell more of our world-class products, and contribute to the goal agreed by Prime Ministers Modi and Luxon [New Zealand Prime Minister Christopher Luxon] of doubling two-way trade by 2030.”
Two-way trade totalled NZ$3.99 billion ($2.29 billion) in the year to June 2026, with India ranking as New Zealand’s ninth-largest goods and services export market.
The trade deal will become effective after both nations complete their respective ratification procedures.
(With inputs from Reuters)