• After a gap of about ten years, India and New Zealand announced resumption of negotiations for a proposed free trade agreement (FTA) to boost economic ties on March 16.

• A free trade agreement is an international treaty between two or more economies that reduces or eliminates certain barriers to trade in goods and services, as well as investment.

• India and New Zealand began negotiating the Comprehensive Economic Cooperation Agreement (CECA) in April 2010 to boost trade in goods, services, and investment. However, after ten rounds of discussions, the talks stalled in February 2015.

• The announcement was made after the meeting of Commerce and Industry Minister Piyush Goyal and Todd McClay, New Zealand’s Minister for Trade and Investment.

• The India-New Zealand FTA negotiations aim to achieve balanced outcomes that enhance supply chain integration and improve market access.

• It also aims to unlock new avenues for businesses and consumers, fostering mutual growth and prosperity of both nations.

India-New Zealand Trade Relations

• The bilateral trade between the two countries stood at $873.4 million (exports $538.33 million and imports $335 million) in 2023-24 as against $1.02 billion in 2022-23.

• India’s key goods exports to New Zealand include clothing, fabrics, and home textiles; medicines and medical supplies; refined petrol; agricultural equipment and machinery such as tractors and irrigation tools; auto; iron and steel; paper products; electronics; shrimps; diamonds; and basmati rice.

• The main imports are agricultural goods, minerals, apples, kiwifruit, meat products such as lamb, mutton, milk albumin, lactose syrup, coking coal, logs and sawn timber, wool, and scrap metals.

• In FY24, India’s services exports to New Zealand stood at $214.1 million, while New Zealand's services exports to India totalled $456.5 million.

• India’s key services exports include IT and software services, provided by companies such as Infosys and HCL, along with telecommunications services to support New Zealand’s digital infrastructure.

• India also exports healthcare services, including medical tourism, pharmaceutical research, and telemedicine. Financial services are another important area, with Indian banks and fintech companies offering digital payment solutions.

(The author is a trainer for Civil Services aspirants.)