New Zealand PM Says 57% of Exports to India Will Be Tariff-Free Under Proposed Deal

As Prime Minister Narendra Modi prepares to visit New Zealand, Prime Minister Christopher Luxon on Thursday expressed optimism about the proposed India-New Zealand trade agreement, saying it is expected to open up significant opportunities for New Zealand exporters.

Sharing his views on X, Christopher Luxon wrote,''New Zealand businesses are set to boom with our India Trade Deal. 57% of everything we export to India will be tariff free from day one.''

For Indian consumers, the agreement could eventually mean cheaper imports of New Zealand products such as kiwifruit, apples, Manuka honey, lamb, wine and seafood as import duties are either removed immediately or reduced over the coming years.

What Becomes Cheaper?

One of the biggest changes under the agreement is the reduction of import duties on New Zealand goods.

Tariffs will be completely removed on several products, including sheep meat (lamb and mutton), wool, coal, leather and hides, timber and forestry products, along with many industrial goods.

Fruits, Wine and Honey to See Gradual Duty Cuts

Kiwifruit and apples will receive expanded quota-based access to the Indian market. Other fruits such as cherries, avocados, blueberries and persimmons will see duties phased out over the next decade.

The agreement also sharply reduces import duties on premium Manuka honey. Tariffs which currently stand at 66% will fall to 16.5% over five years, making the product more competitive in India.

Wine lovers could also benefit. Import duties on New Zealand wine currently as high as 150% will gradually fall to between 25% and 50% over the next 10 years.

Seafood products, including salmon and mussels, along with dairy-based food preparations and infant formula, will also become cheaper as tariffs are phased out over seven years.

India is expected to gain from easier access to the New Zealand market, particularly in sectors such as information technology, engineering, education, healthcare and professional services.

The deal also creates new opportunities for skilled Indian professionals. It introduces a dedicated pathway for certain skilled workers, including engineers, ICT professionals, chefs, yoga instructors and AYUSH practitioners, to take up temporary employment in New Zealand.

Young Indians aged between 18 and 30 will also have access to a new Working Holiday Scheme, allowing them to work and travel in New Zealand for a limited period.

Faster Trade, Less Paperwork

Apart from lowering tariffs, both countries have agreed to simplify customs procedures.

The agreement promises faster clearance of goods, digital documentation, reduced paperwork and streamlined border processes, making trade quicker and less expensive for businesses.

For exporters dealing in perishable products such as fresh fruit and food items, customs authorities have committed to releasing shipments within 24 hours wherever possible.