Labour Support Secures India–NZ FTA, Businesses Welcome Bipartisan Trade Confidence

The India–New Zealand FTA, concluded in December 2025, faced uncertainty due to opposition from coalition partner New Zealand First. Labour’s support now ensures parliamentary approval, giving exporters confidence and paving the way for one of New Zealand’s most ambitious trade deals.

What The Deal Offers

Tariff reductions: 95% of New Zealand exports to India will see tariffs eliminated or reduced, with over half duty-free immediately.

Market access: Indian goods gain duty-free entry into New Zealand, boosting bilateral trade.

Investment commitment: New Zealand must promote US$20 billion (NZ$33 billion) in investment into India over 15 years.

Labour’s Position

Labour leader Chris Hipkins emphasized that while the deal is not what his party would have negotiated, it reflects the importance of India as a strategic partner. He warned businesses to proceed with caution, citing the ambitious investment target and potential clawback of concessions if unmet.

Business Reaction

The New Zealand International Business Forum (NZIBF) and exporters welcomed Labour’s support, noting that bipartisan alignment provides certainty and confidence. Industry groups, including winegrowers and manufacturers, see India’s 1.4 billion consumers as a major growth opportunity.

Key Highlights

•⁠  ⁠Labour backs India–NZ FTA, ensuring parliamentary approval

•⁠  ⁠Deal cuts tariffs on 95% of NZ exports to India

•⁠  ⁠India gains duty-free access for all goods into NZ

•⁠  ⁠NZ must promote US$20 billion investment into India over 15 years

•⁠  ⁠Businesses welcome bipartisan support despite long-term risks

Sources: RNZ, Firstpost, Indian Newslink, U.S. News & World Report, Rural News Group