India-New Zealand FTA Talks Advance with Focus on Agri Tech and Labour Mobility Amid Dairy Trade Sensitivities
India and New Zealand are progressing towards a Free Trade Agreement (FTA), with New Zealand offering to share agricultural technology and discuss labour mobility under its protocols. However, dairy market access remains sensitive due to India's protection of its dairy sector. Both countries seek balanced benefits, including easier movement for skilled professionals and better access for Indian IT and services sectors.
New Zealand and India are actively negotiating a comprehensive Free Trade Agreement (FTA) aimed at strengthening economic ties. New Zealand Trade Minister Todd McClay highlighted their readiness to share agricultural technology to boost Indian farm productivity and consider labour mobility within each country's protocols. Market access for dairy products remains a complex issue as India prioritizes protecting its dairy farmers and MSMEs from foreign competition. India insists on safeguarding sensitive sectors, making dairy concessions unlikely. New Zealand is interested in market access for non-competitive high-end dairy items. India seeks gains primarily through improved labour mobility for skilled workers and expanded access for its IT and services sectors, since New Zealand already maintains low tariffs on goods. Both sides express optimism about concluding the FTA soon, with ongoing consultations and negotiation rounds focused on addressing difficult areas transparently and respectfully. The deal is positioned to enhance bilateral trade, currently valued at $1.54 billion in FY2024, which is below potential. High-level engagements, including visits and business forums, emphasize collaboration and mutual benefit in trade, investment, innovation, and sustainable growth goals by 2030, aligned to India’s target of increasing farmers’ incomes by 50 percent.
