Trade deal: New Zealand ready to share agri tech, discuss labour but India careful on dairy

Commerce and Industry Minister Piyush Goyal, with New Zealand’s Prime Minister Christopher Luxon, in Auckland on Wednesday.
| Photo Credit:
ANI

New Zealand is ready to share with India its agri technology to increase farm productivity and discuss labour mobility within “its own protocols” as part of the free trade agreement (FTA) being negotiated, New Zealand Trade Minister Todd McClay has said.

But market access for dairy products, New Zealand’s primary export item, is a tricky area in the negotiations, as India is not keen to give any concession because of economic and political sensitivities.

FTA push

“India never compromises on the interests of dairy, farmers and MSMEs. We consistently protect the interests of vulnerable sectors…We respect each other’s sensitivities…we will not touch such issues,” Goyal told reporters in Auckland. Goyal is in Auckland to push the FTA towards conclusion and iron out the difficult areas.

Dairy is one such area that needs careful handling as New Zealand is keen for at least some market access. “New Zealand wants that India should give market access for items where it is not in direct competition with Indian dairy farmers and industry such as some high-end products,” a source tracking the matter told businessline.

While Goyal said that the deal was almost done and more rounds of negotiations may not be needed, it is important for New Delhi to pocket gains in terms of easier movement for its skilled professionals and better access for its IT and services sector before the pact is sealed.

“India cannot benefit much from duty cuts for goods as New Zealand already has low tariffs. Although New Zealand is offering agri tech, India also needs easier movement for workers,” the source said.

McClay said the New Zealand government was taking a host of steps in easing movement not just in the student and visitor spaces, but also in the business space. But he said that the country had its own protocols to follow. “We’re very open to, you know, looking at what more we can do… But also, as India has its own protocols around immigration settings as well, and has to manage risks from countries that want to come into India, it’s the same for us in our immigration service as well,” he said.

Labour mobility

New Zealand Prime Minister Christopher Luxon also said conversations on labour mobility would be a very important part of the conversation on the FTA.

On agri tech, McClay said that Luxon had directed him that he should make sure New Zealand did its part to help Prime Minister Narendra Modi meet his commitment to increasing the earnings of Indian farmers by 50 per cent by 2030.

India-New Zealand trade in FY2024 stood at just $1.54 billion, highlighting a significant underperformance in economic ties, according to a study by research body GTRI. “With India’s goods exports at $538.3 million and New Zealand’s exports at $335.1 million, both countries have yet to tap into their true trade potential,” it said.

Published on November 5, 2025