Farmers Weekly | 24 June 2026
Africa comes into view for trade talks
by Neal Wallace
Africa is beckoning as a potential source of future trade agreements.
Speaking in an interview at the Primary Industries Summit in Auckland, Trade Minister Todd McClay said negotiating a trade access agreement with African nations is a long-term project, but New Zealand exporters do business there already. The continent’s people are getting wealthier, and they want high-quality food.
“Think of southeast Asia two decades ago or China three decades ago,” he said.
There was much discussion on the India free trade deal at the conference, with McClay describing it as a once-in-a-generation agreement that opened an export market of 700 million people who want safe, nutritious, tasty food.
He said he had spoken to a leather processor who will now not pay a tariff on NZ leather and expects to export US$10 billion in high-end finished leather products in the next 10 years.
McClay said he also met an Indian carpet maker who previously blended NZ and Indian wool in his carpets to reduce the cost. Following the signing of the FTA, he told McClay, he will use only NZ wool.
Earlier Vangelis Vitalis, the deputy secretary, trade and economic with the Ministry of Foreign Affairs and Trade, said the India FTA was negotiated at a time of increased trade restrictions but also as other countries were seeking bilateral trade agreements.
Before covid, NZ was exposed to 28 export restriction regulations a year. This year it faces 228.
When NZ was finalising its FTA, negotiators from the United States, European Union and Australia were queued waiting to meet their Indian counterparts.
He said NZ did not have much to offer in return for market access and agreed to provide 1667 skilled Indian workers a year with temporary work visas.
Vitalis said when that offer was put to the lead Indian trade negotiator, she replied “Do you know how many people there are India?”
Offers by Zespri and Apple and Pears NZ to help establish centres of excellence to educate local growers sealed the deal.
Vitalis said in return the NZ entities will get out-of-season fruit production and expose Indian consumers to NZ fruit varieties.
Before Australia signed its FTA with India – ahead of NZ – Kiwi exporters had 85% of the sheepmeat market. That fell to 9% after the deal with Australia due to its tariff-free access.
Vitalis said the FTA was favourable for mānuka honey, wine, kiwifruit and horticulture.
“It’s a colossal market, larger than the EU or the ASEAN countries.”
Dairy access proved a sticking point, and Vitalis said officials will continue to work on it.
There was also provision for NZ to improve its FTA provisions should other countries secure more favourable terms, and that includes for dairy.
Earlier McClay told the conference that NZ was on track to meet its target of doubling the value of primary sector exports by 2034.
Citing the sector’s performance in the 12 months to June 30, in which annual exports grew 6% to $64.3bn, McClay said by 2030 sector exports will exceed $70bn.
