India, New Zealand to launch free trade agreement negotiations, aim for 2025 deal
Prime Minister Narendra Modi said that India and New Zealand have decided to start detailed negotiations on a mutually beneficial free trade agreement (FTA).
Announcing this after holding talks with his New Zealand counterpart Christopher Luxon in New Delhi, Modi said the agreement is expected by the end of 2025.
The development assumes significance as India’s exports to New Zealand are aggregated to $682 million in 2023, while New Zealand’s shipments to India totalled $369 million in the same year, as per the data visualisation platform Observatory of Economic Complexity.
External Affairs Secretary (East) Jaideep Mazumdar said free trade agreement is a process which has been initiated, in a time-bound manner. “Perhaps by the end of this year we hope to conclude (the) free trade agreement,” he added.
Welcoming the launch of negotiations for what they called as “balanced, ambitious, comprehensive, and mutually beneficial” FTA between the two countries to achieve deeper economic integration, both Modi and Luxon agreed for discussions between respective authorities on both sides to explore the early implementation of cooperation in the digital payments sector within the context of FTA negotiations.
According to a joint statement, both the PMs, in the context of the negotiations for the trade deal, also agreed to start discussions on an arrangement facilitating the mobility of professionals and skilled workers, primarily to address the challenge of irregular migration.
Speaking on the proposed FTA, Modi said mutual cooperation and investment will be encouraged in areas like dairy, food processing and pharma.
The agreements signed between the two sides include a mutual recognition pact between the Central Board of Indirect Taxes and Customs of India (CBIC) and New Zealand’s Customs Service.
Luxon arrived in New Delhi on Sunday on a five-day visit primarily to push for deeper economic engagement between the two sides.
