In the context of an increasingly turbulent international trade environment, the Ministry has continued to pursue an intensive programme of trade initiatives and economic diplomacy to boost New Zealand’s trade resilience and advance the Government’s goal of doubling the value of exports by 2034.
Changes in approaches to tariff policies, disrupted supply chains, and changing regulatory environments have contributed to ongoing uncertainty for New Zealand exporters. Recent developments in the Middle East have compounded challenges within the international trade environment.
New Zealand’s trade performance has held up well. Strong export growth in 2025 has continued into 2026, with exports up 10.9 percent (to NZD$120.2 billion) over the year ending June 2026. This puts export performance ahead of the growth trajectory required to double the value of exports by 2034.
The Ministry’s trade strategy encompasses three key pillars: (i) working to shore up trade rules to provide stability and predictability for exporters; (ii) building trade resilience; and (iii) innovating to grow new opportunities.
In 2025–26, the Ministry has expanded New Zealand’s FTA network with the conclusion of a new FTA with India; and the early entry-into-force of the UAE Closer Economic Partnership Agreement (CEPA).
The India FTA, signed in April 2026, provides New Zealanders with preferential access to an economy forecast to grow to NZD$12 trillion by 2030. The FTA will eliminate or substantially reduce 95 percent of tariffs on our current exports to India, with 57 percent of exports duty-free from the outset. Following entry-into-force of the UAE CEPA in August 2025, exports to the UAE have risen 12 percent in the year to March 2026, despite significant recent disruption to regional trade.
In 2025–26, 71.4 percent (NZD$120.2 billion) of New Zealand exports were covered by FTAs. This is due to rise to 75 percent once the India and Gulf Cooperation Council FTAs enter into force.
To help New Zealand business to extract maximum value from our FTA network, the Ministry has re-doubled its FTA leveraging efforts. An FTA Boost Unit has been established this year to galvanise further work in this area, and to intensify work to resolve non-tariff barriers (NTBs), which impede the growth and diversification of our exports.
New Zealand’s recently concluded FTAs continue to deliver strong outcomes. Exports to the EU were up 23 percent, to NZD$9 billion, in the year to March 2026; and exports to the UK continued to grow, up 11 percent over the same period (to NZD$4.3 billion).
Working with NZTE and other NZ Inc partners, the Ministry supported 23 Government Trade Missions, to 18 countries since 2024. These are estimated to have generated over NZD$2 billion in deals, contracts and commercial commitments for New Zealand business.
The Ministry made further progress in its proactive approach to expanding New Zealand’s existing FTAs. Costa Rica is set to join the 12 strong Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Uruguay’s CPTPP accession process is advancing, as are preparations with the Philippines, Indonesia and UAE. Argentina has become the newest aspirant.
As part of the Government’s response to the Middle East conflict, the Ministry maintained close contact with key international fuel supply partners, including Singapore, Republic of Korea, Australia, Japan, and Malaysia.
Together with NZTE, the Ministry also participated in regular NZ Inc webinars to provide up-to-date information to business on the Middle East crisis.
Building on New Zealand’s innovative approach to trade issues, we joined Singapore, Switzerland and the UAE in
launching the Future of Investment and Trade Partnership (FIT-P) in 2025.
FIT-P is designed to address emerging trade issues, generate new opportunities, and foster economic growth and security. It brings together 16 economies from across the globe.11 At its first Ministerial Meeting in Singapore in November 2025, there was a focus on supply chain resilience. New Zealand hosted the second FIT-P Ministerial meeting in Auckland in July 2026, representing one of the largest international trade meetings New Zealand had hosted in two decades.
New Zealand has also welcomed substantial conclusion of Peru’s accession to the Digital Economy Partnership Agreement (DEPA) in January; and Uruguay joining the Global Trade and Gender Arrangement in March 2026.
The Ministry has continued to defend established norms that support New Zealand’s trade and economic interests, and build confidence with key partners, through its work in organisations such as the World Trade Organization (WTO), Asia-Pacific Economic Cooperation (APEC), and the Organisation for Economic Cooperation and Development (OECD).
Case study: New Zealand-India Free Trade Agreement
As part of a focus on deepening our bilateral relationship with India, New Zealand formally launched negotiations on an FTA in March 2025. Negotiations concluded nine months later, in December 2025. The FTA was signed in April 2026, and both countries were now undertaking domestic ratification procedures, with a view to early entry-into-force.
The FTA creates valuable opportunities to expand New Zealand’s trade and economic connections with one of the largest and fastest-growing economies in the world. India is forecast to become the third largest global economy by 2030, with GDP estimated at NZD$12 trillion. It has a population of 1.4 billion and a middle class expected to number more than 700 million by 2030. There is significant potential for growth in our trade with India, which is currently only New Zealand’s 11th largest trading partner — representing around 1.8 percent of all exports.
Under the FTA, 95 percent of New Zealand’s current exports to India will have tariffs either eliminated or substantially reduced. 57 percent of current exports will enter India duty-free from entry-into-force of the FTA, with this due to increase to 82 percent when it is fully implemented. A further 13 percent of exports will be subject to tariff cuts. This is estimated to generate tariff savings of NZD$43 million from day one of entry into-force, growing to NZD$62 million (based on current trade levels, but likely to rise due to anticipated trade growth).
The FTA also secures New Zealand’s services trade interests, with commitments that go beyond those India has made at the WTO, including in areas such as tertiary and private education, professional services, fintech, engineering, audiovisual and environmental services.
As well as significantly increasing access for New Zealand goods and services, the FTA will create a more level playing field with those of our competitors who already have FTAs or other trade advantages in the Indian market. The FTA will create further opportunities for trade diversification. The agreement incorporates trade-facilitative outcomes, including to address NTBs, and to streamline customs procedures, for example setting clear timeframes for release of goods.
For New Zealand’s part, and in line with our other recent trade agreements, the FTA will remove all tariffs on Indian imports from day one. We have also made commitments on temporary entry for certain categories of Indian visitors, including business visitors, and on three-year temporary employment entry visas (up to a total of 5,000 (an average of 1,667 per year), of which 4,400 are in areas of recognised New Zealand skill shortage, and the other 600 in iconic Indian
occupations).
Consistent with established practice, the Ministry and other government agencies engaged a range of domestic stakeholders, including Māori, non-governmental organisations (NGOs), unions, business, industry associations and civil society throughout the negotiations. This engagement helped inform and shape New Zealand’s negotiating positions and priorities. Consistent with New Zealand’s other trade agreements, the FTA includes a Treaty of Waitangi exception that preserves the Government’s ability to adopt any policy it considers necessary to fulfil its obligations to Māori.
The FTA includes investment cooperation and promotion chapters to enable deeper cooperation on trade and investment. This includes a commitment for New Zealand to promote investment into India, with the aim of increasing investment by USD$20 billion over 15 years. It also includes an Indian commitment to establish a bespoke ‘New Zealand Investment Desk’ to assist investors with issues across the investment cycle.
There is significant focus, also, on other cooperation and technical assistance activities to grow durable, long term, mutually beneficial partnerships between India and New Zealand, including in the forestry, horticulture, apiculture, livestock, fisheries and aquaculture, wine, traditional knowledge and medicine, tourism, audio visual production, and sports sectors.