New Zealand–India trade deal takes effect, changing tariffs for primary exports
The agreement removes the sheep meat tariff immediately and phases in other cuts, while access for some fruit and honey remains conditional and dairy is excluded.
New Zealand’s free trade agreement with India took effect on 20 October 2026, opening new access to the Indian market for several New Zealand primary exports, RNZ reported. Sheep meat loses its 33 percent tariff immediately, while wine tariffs fall over a decade and access for some fruit and honey carries conditions.
The changes give exporters another market to pursue as they face uncertainty elsewhere. Federated Farmers Meat and Wool chair Richard Dawkins told RNZ that access to India could help exporters respond to shocks in other countries, including US tariffs. He described India as a developing market, rather than claiming that the deal had already increased sales.
Which New Zealand exports gain access to India?
RNZ reported that tariffs on some primary products disappear as the agreement begins, while others are removed in stages. The affected sectors include honey, wool, sheep meat, wine, fruit and forestry. For wine, the reported tariff path runs from 150 percent to 25–50 percent over 10 years, with full removal by 2036. Anishka Jelicich of NZ Winegrowers said the existing tariff had been a major burden; RNZ reported that 20 New Zealand wineries were preparing to showcase their wines at an event in Mumbai.
Access for apples, kiwifruit and honey depends on New Zealand helping Indian producers improve productivity and competitiveness, according to RNZ. The 33 percent kiwifruit tariff is removed for a quota of fruit. Te Puke grower Brigid Crawford called the arrangement a positive trade-off and said Indian growers would gain access to New Zealand industry expertise.
Forest Owners Association president Dean Witehera said 95 percent of the wood products shipped to India were now tariff-free. He told RNZ that New Zealand log suppliers were receiving inquiries from Indian buyers, offering another outlet for exporters that had relied heavily on China. In the other direction, RNZ reported that all Indian exports to New Zealand are now duty-free; New Zealand’s tariff cuts are staggered, eventually covering 95 percent of its exports.
Dairy exclusion and the deal’s timeline
Dairy is excluded from the agreement. Fonterra told RNZ it was disappointed that negotiations had not secured significant new opportunities for its core dairy products in India. The deal also includes a New Zealand commitment to promote private investment in India, aiming for a $34 billion increase over 15 years, RNZ reported.
The countries completed their ratification processes on 21 September 2026, according to New Zealand’s Ministry of Foreign Affairs and Trade. Its timeline says negotiations reached a substantive conclusion on 22 December 2025, the agreement was signed in New Delhi on 27 April 2026, and it entered into force on 20 October.
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Sources and context
- India FTA 'builds resilience' in global markets for NZ primary sectorRNZ
- Timeline of Negotiations and next stepsNew Zealand Ministry of Foreign Affairs and Trade
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.