NZ Signs Historic India Free Trade Agreement
New Zealand and India have signed a Free Trade Agreement (FTA) described as a once-in-a-generation deal.
Trade and Investment Minister Todd McClay says that early implementation of the deal has given Kiwi exporters a critical advantage, with tariff reductions and improved market access accelerating growth.
Exports to the EU hit $8.8 billion in the year to December 2025 - up 29%, or close to $1.9 billion. Two years ago, exports were $5.7 billion.
Key Facts
- Total exports to EU (2025): $8.8 billion
- Growth in two years: +$3 billion
- Annual increase: +29%
- Goods exports: $6.7b (+35%)
- Services exports: $2b (+11%)
- Butter exports: +121%
- Meat exports: +38%
- Kiwifruit exports: $1.2b
- Jobs linked to trade: 1 in 4 NZ jobs
“On the Agreement’s second anniversary, Kiwi exporters have now chalked up an extra $3 billion in sales," says McClay.
"This growth has significantly exceeded forecasts and expectations and shows what’s possible when we back our exporters and open new doors.
“It means the world is choosing more of the high-quality food, fibre and products our farmers, growers and businesses are known for.”
Strong Demand for NZ Products
Some of the strongest gains in the past year include:
- Butter exports, up 121%
- Cheese, up 400%
- Meat, up 38%
- Fruit and vegetables, up 29.3%
Dairy exports rose 58% overall, with butter reaching $276 million and cheese exports increasing fourfold to $51 million.
Meat exports climbed to $1.9 billion, driven by a 50% increase in sheep meat exports.
Horticulture also performed strongly, with fruit and vegetable exports rising 29.3% to $1.36 billion — including $1.2 billion in kiwifruit exports.
Trade Driving Jobs and Regional Growth
Approximately 25% of Kiwi jobs depend on trade.
McClay says the surge in exports flows directly into stronger regional economies, higher incomes and more secure jobs.
“Making full use of the Agreement is vital in a time of global uncertainty and supports New Zealand’s goal of doubling export value within a decade.
“Today we celebrate not only our strengthened trade to the EU, but also the strong relationship we have developed over many years. The EU remains a trusted and important partner for New Zealand.”
Frequently Asked Questions
How much have NZ exports to the EU increased?
Exports have risen by $3 billion in two years, reaching $8.8 billion in 2025.
What is driving export growth to Europe?
Growth is driven by dairy, meat, industrial goods and horticulture, supported by tariff reductions under the trade agreement.
What products does NZ export most to the EU?
Key exports include dairy (especially butter and cheese), meat, kiwifruit, industrial goods and seafood.
Why is the NZ–EU FTA important?
The agreement improves market access, reduces tariffs and supports economic growth, jobs and export expansion.
How important is trade to New Zealand’s economy?
Trade supports around one in four jobs in New Zealand and is a major driver of regional economic activity.
