Agriculture and Trade Minister Todd McClay signed a new Memorandum of Cooperation (MOC) today during the Prime Minister’s Indian Trade Mission. The MOC signals New Zealand’s dedication to strengthening its partnership with India in the forestry and horticulture sectors.
“Our relationship with India is a key priority for New Zealand, and this agreement reflects our commitment to deepening this strategic partnership,” McClay said in a statement.
Strengthening Forestry Ties
New Zealand’s forestry exports to India experienced a notable increase, rising from $9.5 million in 2023 to an estimated $76.5 million in the following year.
The signed Memorandum of Cooperation outlines plans to nurture bilateral forestry collaboration to support continued mutual growth. It also provides a framework for collaboration in key areas such as sustainable forest management, agroforestry, research and innovation, education, and capacity building.
Advancing Bilateral Horticulture
New Zealand and India have also signed a Memorandum of Cooperation (MOC) aimed at establishing closer ties between both countries’ horticultural industries. This agreement focuses on key areas such as technical exchanges, improvements in harvest and post-harvest management, training programs, and the sharing of technological expertise.
A major milestone of the Memorandum of Cooperation (MOC) is the joint development of the kiwifruit industries in New Zealand and India. Minister Todd McClay noted that the sector, currently valued at $600 million, has the potential to generate up to $1 billion in mutual horticultural benefits over the next decade
New Zealand’s kiwifruit industry is renowned globally for its high-quality produce, and the recent agreement is anticipated to foster additional growth and innovation in both New Zealand and India.
“By working together, we can unlock new opportunities for both nations, supporting the growth and diversification of our horticultural industries while benefiting rural communities on both sides,” McClay added.
New Zealand’s Indian Trade Mission
Prime Minister Christopher Luxon and Trade and Investment Minister Todd McClay arrived in India on March 16 and announced the formal launch of negotiations between New Zealand and India for a Comprehensive Free Trade Agreement (FTA).
India and New Zealand initially launched negotiations for a Comprehensive Economic Cooperation Agreement (CECA) in April 2010. However, after nine rounds of discussions, the talks stalled in 2015 due to disagreements over market access, tariff structures, and trade priorities.
The renewed negotiations between India and New Zealand aim to establish a “comprehensive and mutually beneficial” Free Trade Agreement (FTA) that focuses on enhancing supply chain integration and improving market access.
The first round of New Zealand and India’s FTA talks are set to begin in April 2025.