# Free Trade Agreement Impact on Prices

> New Zealand's free trade deal with India may lower prices for some goods but not others.
- Title: Free Trade Agreement Impact on Prices · RNZ | Shortify
- Summary: New Zealand's free trade deal with India may lower prices for some goods but not others. New Zealand consumers may see price changes for exports like wool…
- Keywords: new zealand, india, free trade agreement, prices, infometrics, gareth kiernan, murat ungor, otago university, tariff, politics, news, Free
- Source: RNZ — https://rnz.co.nz/news/business/2230546/does-a-free-trade-agreement-affect-prices-you-pay
- Author: RNZ | Te Reo Irirangi o Aotearoa
- Published: 2026-10-29T17:19:27+00:00
- Read time: 1 min
- Topics: new zealand, india, free trade agreement, prices, infometrics, gareth kiernan, murat ungor, otago university, tariff, politics, news
## Free Trade Agreement Impact
New Zealand's free-trade agreement with India has been in force for a little over a week.
## Effect on Prices
Economists say the effect on consumer prices depends on whether India is a large importing country for specific products.
## Gareth Kiernan's View
Infometrics chief forecaster Gareth Kiernan said the effect would depend on India's role as a large importing country for products.
## Wool and Apples
Wool and apples look like products where shifts in Indian demand could affect global prices.
## Murat Ungor's View
Murat Ungor, an economist at Otago University, said trade creation could lower prices for local consumers.
## Trade Diversion
Trade diversion occurs when imports switch from cheaper outside suppliers to partners due to tariffs.
## Price Pass-Through
Market structure determines how much of tariff cuts reach consumers, often resulting in modest price changes.
## Key takeaway

New Zealand consumers may see price changes for exports like wool and apples due to India's trade policies.