Christopher Luxon touts ‘major breakthrough’ in trade talks stalled since 2015
Your support helps us to tell the story
Support Now
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.
India and New Zealand have restarted free trade talks a decade after the negotiations collapsed as Christopher Luxon arrived in Delhi for talks with Narendra Modi.
The New Zealand prime minister, who is in India for a five-day visit, signed major trade and defence agreements to boost economic ties and enhance security in the Indo-Pacific.
The prime minister touted the deal as a "major breakthrough" as it marked a significant milestone for Mr Luxon, who had committed to secure the free trade pact with India in an audacious pre-election pledge.
"It's a great win for New Zealand," Mr Luxon told reporters. "It's a great way to start the trip. I mean, we've got a breakthrough economic agenda here.
"India holds significant potential for New Zealand and will play a pivotal role in doubling New Zealand's exports by value over the next 10 years," Mr Luxon said.
The first round of negotiations for the deal is set to begin next month.
Modi and Luxon share a hug as New Zealand prime minister arrives for talks with Indian prime minsiteropen image in gallery
Modi and Luxon share a hug as New Zealand prime minister arrives for talks with Indian prime minsiter (Copyright 2025 The Associated Press. All rights reserved)
Mr Luxon had promised to deliver a free trade deal with India during the 2023 election campaign. Analysts at that time raised doubts over his pledge with negotiations in limbo.
Mr Luxon is leading a high-level delegation which includes key business leaders and several parliamentarians, as a part of his first visit to India. It is reportedly one of the largest delegations that Mr Luxon has travelled with so far.
The renewed trade talks come as part of India’s broader push to secure trade agreements with other nations, following US president Donald Trump’s decision to impose reciprocal tariffs on imports from several countries, including India. These tariffs are set to take effect on 2 April.
Mr Luxon will also be a keynote speaker at the inaugural session of the geopolitical conference in Delhi, Raisina Dialogue, which will also be attended by top Donald Trump administration officials, including US Director of National Intelligence Tulsi Gabbard.
Indian Prime Minister Narendra Modi greets visiting New Zealand Prime Minister Christopher Luxon before their meeting in New Delhiopen image in gallery
Indian Prime Minister Narendra Modi greets visiting New Zealand Prime Minister Christopher Luxon before their meeting in New Delhi (Copyright 2025 The Associated Press. All rights reserved)
The Indian prime minister said the two countries will prepare a roadmap “for mutual cooperation in defence industries”, including initiating negotiations on a “mutually beneficial” free trade agreement.
He added that “as maritime nations, India and New Zealand have a strong and common interest in an open, inclusive, stable and prosperous Indo-Pacific, where the rules-based international order is upheld”.
“New Zealand is committed to doing more with India across a wide range of areas — defence and security, trade and economics, people-to-people ties, education, tourism, sports and culture,” Mr Luxon said at joint press conference with Mr Modi.
Defence cooperation with New Zealand is significant as it is a member of the Five Eyes alliance –alongside Australia, Canada, the UK, and the US amid growing concerns over Beijing’s expanding influence in the Pacific and its increasing assertiveness in regional affairs.
On Sunday, the representatives of the Five Eyes alliance took part in a conference in Delhi. The meeting attended by intelligence and security chiefs was hosted by India's National Security Adviser Ajit Doval.
Christopher Luxon is on a five day visit to India with its largest-ever entourage of high-level delegationopen image in gallery
Christopher Luxon is on a five day visit to India with its largest-ever entourage of high-level delegation (Copyright 2025 The Associated Press. All rights reserved)
The bilateral trade between India and New Zealand stood at $873.4m in 2023-24 financial year compared to $1.02bn in 2022-23.
The trade negotiations began between the two countries in 2010. Nine rounds of negotiations were conducted, with the last formal round taking place in February 2015 in New Delhi.
The deal stalled over the key issue of New Zealand, a major exporter of dairy products, seeking a greater access to the Indian market. However, India, with its large dairy industry, was reluctant to lower tariffs, fearing competition for local farmers.
The Kiwi leader, however, did not say whether dairy exports had been discussed and appeared optimistic about working through the challenges.
However, India has become more open to negotiation in trade deals with other countries as it strikes to boost its economic clout.
India and the European Union last month agreed to finalise a long-pending free trade agreement by the end of this year. A similar trade deal between India and the United Kingdom is also in the works.
India and Australia also signed a major trade cooperation deal in 2023.