The Free Trade Agreement (FTA) between India and New Zealand is likely to be made operational next month that would eliminate tariffs on 100% of Indian exports.
“The agreement will come into force in October on a mutually agreed date,” an official said Thursday. India and New Zealand signed their FTA on April 27 after conclusion of negotiations on December 22, 2025. The talks on the FTA started in March last year. The FTA also comes with a commitment from the New Zealand side to invest $ 20 billion in India over the next 15 years.
Talks with China
Sources said that a meeting is expected between trade ministers of India and China on the sidelines of the BRICS Summit, that would be held on September 12-13. Several issues afre expected to be discussed during the courtesy meet.
High-level economic and trade dialogues directly between the trade ministers of India and China had been limited following the 2020 Galwan Valley clash. Engagement had primarily been channeled through broader multilateral forums like the G20, BRICS, and WTO.
Commerce and Industry Piyush Goyal met with China’s Minister of Commerce Wang Wentao in March on the sidelines of the World Trade Organization’s 14th Ministerial Conference (WTO MC14) in Yaoundé, Cameroon.
FTA with Chile, Mercosur
Efforts are also on to wrap up negotiations on the Comprehensive Economic Partnership Agreement (CEPA) with Chile that builds on the already existing Preferential Trade Agreement (PTA) between the two countries.
To take stock of the negotiations and push them forward, Commerce Secretary Rajesh Agrawal visited Santiago last week. The two countries have held four rounds of formal negotiations on the CCPA with the last meeting held in New Delhi last December. Trade talks were temporarily paused following elections in Chile.
Both sides are currently engaged in sorting out differences on the issue of market access and critical minerals trade. Chile is seeking market access in agriculture and horticulture items of its interest where India has sensitivities.
Similarly India is seeking a provision in the agreement that includes a commitment from Chile on supply of critical minerals. There is a chapter on Critical Minerals in the CEPA but Chile is unwilling to give commitments on supplies because local laws do not allow it.
The official also said that Terms of Reference (ToR) for expansion of the Preferential Trade Agreement between India and Mercosur could also be finalised in October. Mercosur, which is a South American trade bloc, includes Argentina, Brazil, Paraguay, Uruguay, and Bolivia.
The existing PTA covered 450 Indian tariff lines with preferential access to MERCOSUR and 452 MERCOSUR lines with preferential access to India.
Meanwhile, Argentina is willing for a separate trade arrangement with India in case MERCOSUR trade deal takes time, the official added. Agrawal had also visited Argentina and Brazil last week.