On Monday, India and New Zealand signed a free trade agreement (FTA) that took just nine months to negotiate, a win for both sides and a potential model for Canada in forging its own trade deal with India.
The India–New Zealand FTA provides duty-free access for 100 per cent of Indian exports to New Zealand. India, in turn, agreed to cut or lower tariffs on 95 per cent of New Zealand exports; roughly half of those levies will be eliminated immediately. New Delhi shielded access to dairy, coffee, onions, sugar, spices, rubber, and other "sensitive” industries.
As part of the agreement, New Zealand agreed to invest US$20 billion in India and grant up to 5,000 Temporary Employment Entry visas for Indian professionals. New Zealand Prime Minister Christopher Luxon said, “Our business community is excited to see the doors of opportunity open to 1.4 billion people whose economy is set to become the third largest in the world.”
India–New Zealand trade totalled a mere US$2.4 billion in 2024 — about as much trade as India and the U.S. do in one week. But both sides pointed to the potential to “unlock” and “catalyze” new opportunities.
The FTA is the ninth trade deal signed by India in the last 3.5 years (including pending deals with the U.S. and European Union), with coverage exceeding 65 per cent of global GDP.
Canada takes notes
The FTA is good reading material for Ottawa, which is looking to conclude a Canada–India Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026 — an ambitious timeline that, given Ottawa's desire to diversify trade, could be met.
Like Canada, New Zealand kicked off unsuccessful negotiations with India in 2010, “relaunching” talks last year. A similar investment pledge is possible for the Canada–India CEPA, although provisions on visas may prove trickier politically; a March poll by Leger concluded that “Canadians show strong support for stricter immigration-related policies.” As APF Canada noted in a recent report, Canada–India trade, while substantial (C$31 billion in 2024), is “structurally imbalanced and under-leveraged.”
India’s commerce minister, Piyush Goyal, is set to visit Canada in May; he will be accompanied by India’s largest-ever business delegation.
