India-New Zealand Free Trade Agreement takes effect

The Free Trade Agreement (FTA) between India and New Zealand has officially come into force, introducing significant changes to trade and migration pathways.

For the wine industry, the agreement provides relief through the progressive reduction of tariffs on eligible New Zealand wines over the next decade. Tariffs are expected to drop from 150 per cent to between 25 and 50 per cent, depending on the wine's value. The deal also includes a ‘Most Favoured Nation’ provision, ensuring New Zealand benefits from any future, more favorable tariff arrangements India negotiates with other partners, such as the European Union.

Regarding migration, the agreement established two new pathways allowing up to 5,000 skilled Indian professionals to work in New Zealand for up to three years at any one time. However, the utility of these visas has faced criticism. An immigration lawyer described the pathways as ‘cosmetic at best,’ noting that they do not allow workers to bring family members or count toward permanent residency requirements. New Zealand First leader Winston Peters also commented on the complexity of the arrangements, citing confusion regarding the treatment of Indian workers under the deal.