India launches trade deal negotiations with New Zealand amid Trump's global trade war

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.

New Delhi: India and New Zealand on Sunday announced the launch of the negotiations for a comprehensive and mutually beneficial Free Trade Agreement (FTA) even as both nations of late found themselves on the firing line of the trade war unleashed by United States President Donald Trump.

A day before Prime Minister Narendra Modi is set to host his New Zealand counterpart, Christopher Luxon, for talks in New Delhi, the trade ministers of the two nations announced the launch of the negotiations for the Free Trade Agreement. “I’ve landed in India – a country of huge importance to New Zealand’s prosperity, security and society,” Luxon posted on X after landing at the Indira Gandhi International Airport in New Delhi. “India provides huge economic opportunity for Kiwis.”

Though Modi and Trump agreed to conclude at least a part of a trade deal by fall, the US president did not spare India from his tariff tirade in the past few weeks. India last month resumed its negotiation with the United Kingdom for a trade deal. Modi and the European Commission President, Ursula von der Leyen, early this month set the target to conclude the protracted negotiation for the trade agreement by the end of the year.

Wellington is also concerned about the possibility of Trump’s tariff war slowing down New Zealand’s exports of dairy, meat and wine to the US. Besides, New Zealand is also worried about the possibility of the economy of China, its largest export market, slowing down due to the tariff war with the US.

New Zealand exported goods and services worth $0.84 billion to India in 2023-24. India exported $0.91 billion to New Zealand in the last financial year, when the total bilateral trade stood at $1.75 billion. India primarily imports wool, iron, steel, fruits, nuts and aluminium from New Zealand. India’s exports to New Zealand include pharmaceuticals or medications, mechanical machinery, made-up textile articles, pearls, precious stones and metals.

The two sides announced the launch of the negotiation for a trade agreement during a meeting between Commerce and Industry Minister Piyush Goyal and his New Zealand counterpart, Todd McClay, on Sunday.

Goyal and McClay laid the foundation of a momentous partnership towards strengthening the economic and trade ties between the two countries. “The India-New Zealand FTA negotiations aim to achieve balanced outcomes that enhance supply chain integration and improve market access. This milestone reflects a shared vision for a stronger economic partnership, fostering resilience and prosperity,” the Union Ministry of Commerce and Industry stated.

“We are delighted to announce the launch of India-New Zealand Free Trade Agreement (FTA) negotiations. This marks a significant milestone in our partnership, reflecting our shared vision to deepen trade ties and expand economic opportunities,” Goyal posted on X after meeting McClay.

“With bilateral trade continuing to grow steadily, surpassing $1 billion during April-January 2025, the FTA negotiations aim to unlock new avenues for businesses and consumers, fostering mutual growth and prosperity of our nations."

Luxon has been accompanied by a delegation of business and community leaders during his visit to New Delhi. He will visit Mumbai and meet business leaders before flying back to Wellington on March 20.