By Pragati Saha
A major Free Trade Agreement (FTA) has been signed between India and New Zealand, which is expected to improve trade, investment and cooperation between both the nations.
The deal has been described by both nations as ambitious and favourable to both of them. It seeks to improve market access, promote investment, create a new strategic partnership and open up new opportunities in different areas, which include businesses, farmers, MSMEs, students and young people.
FTA negotiation began to happen from March 2025, when New Zealand’s Prime Minister Christopher Luxon made a trip to India, It took approximately nine month to complete the deal. After this both the countries are hopeful that the trade will double within five years, Additionally New Zealand will also make an investment of USD 20 billion in the next 15 years.
Prime Minister Modi called this agreement an important moment for our bilateral relationship while mentioning that it will significantly improve trade and investment links. He also stated of having a very good conversation with New Zealand’s Prime Minister just after the FTA agreement was signed. The deal has taken only nine months to complete which shows the strong political commitment for the mutual desire to enhance economic relations.
Luxon stated that the FTA would provide opportunities for farmers, growers, and businesses in New Zealand by enhancing exports, generating jobs and increasing incomes which would help New Zealand to progress.
The agreement has caused a political tension in New Zealand as Winston Peters, the leader of New Zealand First, and Foreign Affairs Minister objected to his party’s disapproval of the Free trade Agreement between India-New Zealand by calling it “neither free nor fair” and arguing that it gives away too much without making sure benefits for the people of New Zealand.
Despite the opposition to the deal, Peter mentioned that the New Zealand First will remain committed to improving the relationship between India and New Zealand and will continue to engage with India in diplomatic matters.