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New Zealand Parliament Clears Path for Free-Trade Agreement With India

Bloomberg Markets •
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New Zealand’s parliament passed legislation enabling a free-trade agreement with India, with lawmakers approving the bill 93-29 on Wednesday, Trade Minister Todd Mc Clay said in Wellington. The deal, described by Prime Minister Christopher Luxon as “once-in-a-generation,” was backed by both the ruling National Party and the opposition Labour Party. India’s commerce secretary expects the pact, concluded in December and signed in April, to become operational in the second half of October.

The agreement eliminates tariffs on New Zealand exports including wine, kiwifruit and apples, with 57% of shipments becoming duty-free immediately and 95% seeing reduced or eliminated tariffs once fully implemented. Two-way trade between the nations totaled almost NZ$4 billion ($2.3 billion) in the 12 months through June, and both Luxon and Indian Prime Minister Narendra Modi expect the deal to help double trade by 2030.