New Zealand Signs Trade Deal With India

New Zealand’s trade minister, Todd McClay, left for New Delhi on Thursday to sign a free trade agreement with India, a deal that the government says will sharply lower tariffs on a wide range of exports, including wine, fruit, seafood and dairy ingredients.

McClay is leading a cross-party delegation that includes members of Parliament and more than 30 business representatives from New Zealand. The signing comes after negotiations concluded in December 2025 and follows years of effort by Wellington to secure broader access to one of the world’s largest consumer markets.

For the wine industry, the agreement is especially significant. India’s tariff on wine, which has been 150%, will fall over 10 years to either 25% or 50%, depending on the value of the wine. The deal also includes a most-favored-nation commitment, which means New Zealand exporters should receive treatment no worse than that given to other trading partners if India later offers better terms elsewhere.

The government said the agreement will eliminate or reduce tariffs on 95% of New Zealand exports to India. It said nearly 57% of exports will enter duty-free from day one, rising to 82% once the deal is fully implemented. The remaining 13% will face sharp tariff cuts.

Among the products set to gain immediate duty-free access are sheep meat, wool, coal and more than 95% of forestry and wood exports. Most seafood exports, including mussels and salmon, will become duty-free over seven years. Most iron, steel and scrap aluminum exports will also gain duty-free access over 10 years or less.

The agreement gives New Zealand fruit growers new openings as well. Apples will face a 50% tariff cut within a large quota that is nearly double recent average export volumes. Kiwifruit will enter duty-free within a quota almost four times recent average exports, while tariffs outside that quota will be halved. Cherries, avocados, persimmons and blueberries will receive duty-free access over 10 years.

Mānuka honey tariffs will fall from 66% to 16.5% over five years. Dairy exporters will also see gains, with duty-free access for dairy and other food ingredients for re-export from day one. Bulk infant formula and other high-value dairy preparations will gain duty-free access over seven years. High-value milk albumins will receive a 50% tariff cut within a New Zealand-specific quota equal to current export volumes.

McClay said the agreement would create major opportunities for exporters in what he described as one of the world’s fastest-growing economies. He said the signing was part of the government’s effort to strengthen ties with India and support its goal of doubling export value within 10 years.

While in India, McClay is scheduled to mark Anzac Day at a dawn service honoring New Zealanders, Australians and Indians who died in military service. He will also host a joint New Zealand-India business summit with Piyush Goyal, India’s commerce and industry minister.

After India, McClay is due to stop in Singapore for trade and investment promotion activities.