New Zealand–India trade agreement begins, with tariff relief for exporters

The New Zealand–India free trade agreement took effect on October 20 in New Zealand, RNZ reported, moving the deal from a scheduled start to tariff relief for exporters. Trade and Investment Minister Todd McClay said 57% of New Zealand exports to India can now enter tariff-free, including sheep meat, wool, coal and most forestry products.

That change follows the two countries’ completion of ratification on September 21. New Zealand’s Ministry of Foreign Affairs and Trade had said the agreement was due to enter into force on October 20, when the initial tariff cuts would begin.

Which New Zealand exports get tariff relief

McClay said the tariff-free share of exports would rise from 57% to 82% over time. The next round of cuts is due on January 1, 2027, so the access available to exporters will change in stages rather than all at once.

Wine faces a longer transition. McClay said tariffs that had stood at 150% would fall to 25% or 50% over 10 years. He described winemakers as among the biggest beneficiaries, citing the high tariff that had restricted their access to India.

How the agreement reached its start date

McClay said the countries launched talks in March 2025 and concluded them nine months later. The September ratification milestone cleared the way for the October start, which RNZ now reports has occurred. An earlier NewsJaws report covered the agreement’s scheduled start; the change is that the first tariff provisions are now in force.

The minister framed the agreement as a way for New Zealand exporters to diversify their markets during an uncertain period for the world economy. He called it a step towards the government’s goal of doubling the value of exports over 10 years. For businesses selling into India, the immediate change is the tariff treatment of eligible goods; later reductions, including those for wine, depend on the agreement’s timetable.