New Delhi: India and New Zealand have revived free trade negotiations after a decade-long pause, with the first round of talks scheduled to begin next month.
The announcement came as New Zealand Prime Minister Christopher Luxon commenced his five-day visit to Delhi, where he held discussions with Indian Prime Minister Narendra Modi.
Calling it a “major breakthrough” in economic relations, Luxon emphasized that, “India holds significant potential for New Zealand and will play a significant role in doubling New Zealand’s exports by value over the next 10 years.” Currently, bilateral trade between the two nations is valued at under $2 billion (£1.55 billion).
Beyond trade, both nations are expanding cooperation in defense, security, sports, and environmental initiatives. As part of this effort, India and New Zealand signed a defense cooperation agreement focused on maritime security. Additionally, discussions are underway to strengthen collaboration in the digital payments sector.
Luxon is also participating as a keynote speaker at a major geopolitical conference in Delhi, which is being attended by US Director of National Intelligence Tulsi Gabbard. India’s engagement with New Zealand is strategically significant as it looks to counter China’s growing influence in the Indian Ocean region.
India and New Zealand first initiated trade negotiations in 2010, but talks stalled due to disagreements over market access, particularly in the dairy sector. New Zealand has long sought greater access to India’s dairy market, which India has historically protected to support its farmers.
However, India has recently shifted its stance on free trade, reopening negotiations with multiple global partners. The decision to resume trade talks with New Zealand follows similar moves with the European Union and the United Kingdom.
