New Zealand and India Strengthen Ties Ahead of Free Trade Deal

Businesses in New Zealand and India are being encouraged to prepare for a potential free trade agreement as discussions between the two nations gain momentum. During a business summit in Auckland on Wednesday, Edwin Paul, chair of the New Zealand-India Business Council, called for enterprises to start making necessary adjustments ahead of the expected trade deal.

The summit featured remarks from New Zealand’s Trade Minister Todd McClay and India’s Trade Minister Piyush Goyal, who is leading a 43-member delegation for the fifth round of formal trade talks—marking the largest group from India to visit New Zealand. This visit is particularly significant as it is the first by an Indian commerce minister in 18 years.

Strengthening Educational Ties

During his address, Goyal highlighted the importance of collaboration between the two countries, advocating for the introduction of dual degree programs that would allow tertiary students from both New Zealand and India to gain valuable international experience. This initiative aims to enhance educational exchanges and strengthen cultural ties.

New Zealand’s Prime Minister Christopher Luxon prioritized the meeting with Goyal, skipping Question Time in Parliament to do so. He emphasized the significance of Goyal’s visit, stating, “The fact that he’s come down to New Zealand is a really big sign of the conversation, the progress that we’re making, and it’s a really important relationship for New Zealand.”

McClay announced plans to visit India next week to participate in a trade conference, further solidifying the relationship between the two nations.

A Symbolic Visit and Future Prospects

Goyal’s visit is part of ongoing efforts to reinforce trade ties following Luxon’s trade mission to India in March and the visit of Indian President Droupadi Murmu to New Zealand last year. Goyal will continue his trip to Rotorua on Thursday to engage with local businesses and further the trade negotiations.

The New Zealand government has expressed its commitment to strengthening its trade and economic partnership with India, which is projected to become the world’s third-largest economy in the coming years. In a 2023 election debate, Luxon pledged that his administration would aim to sign a free trade agreement with India during its first term.

Previous negotiations between New Zealand and India from 2011 to 2015 faced challenges, particularly regarding dairy exports, and ended when India joined the Regional Comprehensive Economic Partnership, which it later exited in 2019.

Currently, India ranks as New Zealand’s 12th two-way trading partner, with total trade valued at approximately $3.14 billion in 2024. Additionally, India is New Zealand’s 25th largest goods export market, with exports valued at $718 million, primarily in forestry and agricultural products, such as wool, timber, and apples.

Piyush Goyal is scheduled to remain in New Zealand until Saturday, continuing discussions that could pave the way for a stronger economic relationship between the two nations.