Strategic Lens
Why did an India-New Zealand trade deal take until 2026?
What happened. India and New Zealand signed a free trade agreement on 27 April 2026. New Zealand's Parliament passed the implementing law on 17 September 2026, and the two governments ratified it on 21 September.
- For years talks stalled over disagreements about agricultural subsidies.
- In March 2025 New Zealand's prime minister led a trade delegation to India, and the two agreed to open negotiations in April 2025.
- The agreement announced on 22 December 2025 removes tariffs on 95 percent of New Zealand's exports, but leaves most dairy products, such as butter and cheese, outside the deal.
- New Zealand First opposed the deal, and it passed with Labour's support, by 93 votes to 29.
- Goods trade is small, about USD 1.2 billion in 2025, so the deal's weight lies in investment, visas and future access.
Understanding. From our lens, dairy was the obstacle for New Zealand and farm protection was the obstacle for India. The deal moved once dairy's core products were left out, which suggests each side accepted a smaller deal rather than a complete one.
Benefits
- BothTariff-free access for Indian exports, and NZ access for fruit, meat, wool, coal and forestry products.
Constraints
- BothDairy exporters were disappointed, and the coalition partner New Zealand First voted against.
Sources: Wikipedia: India–New Zealand relations (revision of 23 September 2026); UN Comtrade (public preview API), annual goods trade, HS classification (retrieved 26 September 2026)
Last updated on 25 September 2026