3 publishers · first seen Tue, 27 Oct 2026 12:57 UTC · updated Fri, 30 Oct 2026 12:46 UTC
New Zealand's free-trade agreement with India has recently come into force, with economists noting its impact on consumer prices is uncertain. Gareth Kiernan and Murat Ungor, both economists, say the effect depends on whether India's increased demand for New Zealand exports like wool and apples is significant enough to influence global prices. They note that if India is not a major importer of a product, such as lamb or wine, world prices are unlikely to change, leaving prices for New Zealand consumers unaffected.
The agreement is also seen as a strategic move to diversify New Zealand's trade away from China, given geopolitical risks and slowing Chinese growth. India's strong economic and population growth, along with a rising middle class, offers considerable export potential. However, the extent to which lower import costs translate into lower consumer prices depends on market structure and how much is passed on by retailers.
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