India and New Zealand have made substantial progress across multiple areas in the second round of negotiations on their Free Trade Agreement (FTA) which concluded in New Delhi on Friday.
“This Round accomplished significant advancement in multiple areas, including trade in Goods and Services, Investment, Rules of Origin, Customs Procedures and Trade Facilitation, Technical Barriers to Trade, Sanitary and Phytosanitary Measures, and Economic Cooperation,” a statement by the Ministry of Commerce and Industry said.
Talks advance on multiple fronts, virtual meets planned
The second round of talks went on from July 14 to July 25 and the next round will be held in New Zealand in September this year.
The intersessional virtual meetings will maintain the forward trajectory set in the second round.
“Discussions were marked by mutual interest in achieving early convergence on several texts. Both sides reaffirmed their commitment to concluding a balanced, comprehensive, and forward-looking agreement,” the statement added.
The first round of talks 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.
Dairy access
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.
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.