India–New Zealand free‑trade pact stalls over dairy access

New Zealand’s senior trade official Vangelis Vitalis said the India‑New Zealand free‑trade agreement delivered few gains for New Zealand’s dairy sector, prompting “very disappointed” reactions. India refused to negotiate on core dairy items such as butter, cheese and milk powder, and at times threatened to walk out of the talks. The agreement does, however, eliminate double‑digit tariffs on infant formula and halve tariffs on whey‑protein concentrates, and grants New Zealand limited quota‑based reductions for apples, kiwifruit and honey.

Vitalis highlighted a special provision allowing New Zealand dairy ingredients to be supplied to Indian processors for re‑export without incurring Indian tariffs, potentially opening markets in Bangladesh, Sri Lanka, the United States and the EU. The pact also creates a pathway for up to 5,000 Indian professionals to work in New Zealand on temporary visas for three years, with no route to permanent residence, and includes a commitment to promote up to US$20 billion of New Zealand investment in India over 15 years. The agreement will be reviewed after one year and then biennially.