India and New Zealand on Monday began the fourth round of negotiations on a Free Trade Agreement in Auckland which are expected to go on till Friday.
“Negotiations in this round are focusing on key areas, including trade in goods, trade in services, and rules of origin,” a statement by the Ministry of Commerce and Industry said.
Both sides are working constructively to build on the progress achieved in earlier rounds, to reach convergence on outstanding issues and move towards the early conclusion of the FTA, the statement added.
The first round of talks on the FTA were held in early May. India and New Zealand decided in March to re-launch negotiations on FTA during New Zealand Prime Minister Christopher Luxon’s visit to New Delhi.
It is the second attempt by both countries to strike a trade deal. Through the deal they are aiming to grow their trade 10-fold in the next 10 years. In 2024-25 the bilateral trade stood at $ 1.29 billion with India’s exports at $ 711.08 million and imports at $ 587.15 million.
The first attempt for FTA lasted from 2010 to 2015. During that period 10 rounds of negotiations were held before the . One of the key sticking points in the FTA is New Zealand’s demand for access to Indian dairy markets. Dairy along with agriculture is the most sensitive area to negotiate. In no FTA that India has signed so far has it agreed to open the dairy sector. Even in the India-UK FTA, which was finalised earlier this week, dairy has been kept out.
India’s bilateral merchandise trade with New Zealand reached $ 1.3 billion in FY 2024-25, recording a growth of 48.6% over the previous financial year. India’s exports to New Zealand stood at $ 711.08 million and imports at $ 587.15 million.