Christopher Luxon holds a post-Cabinet press conference
In-person free trade agreement negotiations with India will begin this week, announced Prime Minister Christopher Luxon.
The Government aims to strengthen ties with India to diversify and grow export markets.
New Zealand’s exports to the EU increased 28% in the first year of the free trade agreement.
In-person free trade agreement negotiations will kick off with India this week, the Government says.
Prime Minister Christopher Luxon made the announcement in the Beehive theatrette alongside Trade Minister Todd McClay.
A major priority for the Government has been restarting trade talks with India. During the2023 election campaign, the National leader promised to get a free trade agreement (FTA) with India this term.
The last set of formal negotiations concluded in 2015.
“This is an important step in our trade relationship with India and signals the two Governments’ intent to deliver a high quality outcome that benefits both countries,” McClay said in a statement.
“With a population of 1.4 billion and a GDP estimated to grow to USD $5.2 trillion ($8.71t) by 2030, India offers significant opportunity for New Zealand exporters.”
“Strengthening ties with India across the board is a key part of the Government’s broader strategy to diversify and grow New Zealand’s export markets and double trade by value in 10 years.”
Prime Minister of India Narendra Modi welcomed Prime Minister of New Zealand Christopher Luxon to India in March. Photo / RNZ / Marika Khabazi.
A recent trade agreement NZ secured was with the European Union. It was signed in July 2023 and came into force last May.
New Zealand exports to the European Union (EU) leapt 28% in the first year of the New Zealand-EU free trade agreement being in force.
The trade deal came into action in May last year after being signed in mid-2023. Trade Minister Todd McClay on Monday said good exports to the EU jumped from $3.8 billion to $4.8 billion in the past 12 months.
“This is good news for all New Zealanders, especially our sheep farmers, kiwifruit growers and machinery exporters. Sheep meat was up 29% adding an additional $216 million, kiwifruit has increased by 69% contributing a further $316 million, and machinery was up an impressive 104% providing $173 million more compared to the previous year.
“Strengthening ties with trading partners is crucial to growing the New Zealand economy and driving up incomes for Kiwis. Better market access, lower costs, and fewer trade barriers with the EU are key to delivering the Government’s ambitious goal of doubling the value of New Zealand’s exports in 10 years.”
The trade agreement removed 91% of duties on NZ exports immediately, with that expected to jump to 97% after seven years. Wine, seafood and other products have also benefited from tariff reductions.
Earlier this month, the Ministry of Foreign Affairs and Trade said a Domestic Advisory Group had been established to provide advice on the FTA as well as NZ’s trade deal with the United Kingdom. It will provide recommendations to the ministry on the implementation and issues covered by the NZ-EU FTA
Luxon’s return to Parliament comes at the start of a sitting block that will include the delivery of the Budget. Parliament has been in recess for the past few weeks.
