India and New Zealand sign a free trade agreement to deepen economic ties

NEW DELHI (AP) — India and New Zealand on Monday signed a free trade agreement to deepen economic ties and expand market access, as both countries navigate mounting global trade disruptions.

The deal comes as New Delhi moves to diversify export markets to offset the impact of steep tariffs imposed by the United States and instability in shipping and energy routes due to the Iran war. For New Zealand, the agreement is part of a broader push to reduce reliance on China, its largest trading partner.

The agreement was signed in New Delhi by India’s Commerce and Industry Minister Piyush Goyal and visiting New Zealand Trade and Investment Minister Todd McClay.

Negotiated over nine months and agreed in December, the deal will cut or eliminate tariffs on 95% of New Zealand’s exports to India, while making all Indian exports to New Zealand duty-free. Wellington has also committed to invest $20 billion in India over the next 15 years.

McClay said the deal marked a “once-in-a-generation” opportunity to deepen economic ties at a time of rising global trade tensions and uncertainty. India is New Zealand’s 12th-largest export market, with bilateral trade valued at $2.15 billion in the year through June 2025, according to official data.

“This agreement is also being concluded at a time of heightened global and regional uncertainty. In this context, strong, reliable partnerships matter more than ever before,” McClay said.

Goyal called the deal a “defining milestone” and said India and New Zealand had “chosen each other” at a time ”when the world economy is being recast.” He said the agreement offers market access across sectors and creating frameworks for investment and regulatory cooperation.

Indian sectors expected to see expanded market access include textiles and apparel, engineering goods, leather and footwear, and marine products. New Zealand is likely to register increased exports in horticulture, timber, coal, wool and meat.

India has excluded dairy and certain agricultural products from the deal to protect its farming sector.

Indian exporters have been under pressure from higher U.S. tariffs since August last year, particularly in labor-intensive sectors such as textiles, auto components and metals, even as New Delhi continues negotiations with Washington on a separate bilateral agreement.

New Zealand’s trade deals are usually bipartisan. The agreement now requires ratification by parliament and is expected to pass after the opposition New Zealand Labour Party backed it, despite resistance from coalition partner and populist minor party New Zealand First.

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Graham-McLay reported from Wellington, New Zealand.

New Zealand Trade Minister Todd McClay, right, sits next to Indian Commerce Minister Piyush Goyal during the India New Zealand Free Trade Agreement signing ceremony and Business forum meeting in New Delhi, India, Monday, April 27, 2026. ( AP Photo/Manish Swarup)

Todd McClay, New Zealand Minister for Trade and Investment shakes hand with Indian Commerce Minister Piyush Goyal following the India New Zealand Free Trade Agreement signing ceremony and Business forum meeting in New Delhi, India, Monday, April 27, 2026. ( AP Photo/Manish Swarup)

New Zealand Trade Minister Todd McClay looks on during the India New Zealand Free Trade Agreement signing ceremony and Business forum meeting in New Delhi, India, Monday, April 27, 2026. ( AP Photo/Manish Swarup)

Indian Commerce Minister Piyush Goyal listens as New Zealand Trade Minister Todd McClay delivers his speech during the India New Zealand Free Trade Agreement signing ceremony and Business forum meeting in New Delhi, India, Monday, April 27, 2026. ( AP Photo/Manish Swarup)

New Zealand Trade Minister Todd McClay, left, talks with Indian Commerce Minister Piyush Goyal during the India New Zealand Free Trade Agreement signing ceremony and Business forum meeting in New Delhi, India, Monday, April 27, 2026. ( AP Photo/Manish Swarup)

NEW YORK (AP) — The U.S. stock market’s record-breaking rally is slowing on Monday after uncertainty rose over the weekend about what will happen next in the Iran war, while oil prices are rising.

The S&P 500 edged down by less than 0.1%, coming off its latest all-time high driven by strong profit reports from U.S. companies and hopes that the United States and Iran can avoid a worst-case scenario for the economy because of their war. The Dow Jones Industrial Average was up 86 points, or 0.2%, as of 9:35 a.m. Eastern time, and the Nasdaq was 0.3% lower after setting its own record.

The moves were stronger in the oil market, where prices climbed more than 1.5% as tankers still find the Strait of Hormuz effectively closed. That’s keeping crude stuck in the Middle East and away from customers worldwide, including crude produced by Iran that’s being blockaded by the U.S. Navy.

Iran has offered to reopen the strait if the United States ends its blockade, while proposing that discussions on the larger question of its nuclear program would come in a later phase. But U.S. President Donald Trump seems unlikely to accept the offer, which was passed to the Americans by Pakistan.

Over the weekend, Trump told U.S. envoys not to go to Pakistan, which has been playing a crucial mediating role. By saying the Iranians could call Washington with any proposal, Trump appeared to signal he’s content to try to continue to squeeze Iran with the blockade.

The price for a barrel of Brent crude to be delivered in June climbed 1.7% to $107.09. Brent to be delivered in July, which is where more of the trading is happening in the oil market, rose 1.7% to $100.90 per barrel.

Brent prices were at only roughly $70 per barrel before the war and have briefly shot above $119 a couple times when fear about the war have hit their heights.

Most big U.S. companies have nevertheless been reporting profits for the start of 2026 that have topped analysts’ expectations. That’s helped the S&P 500 jump more than 12% since hitting a low in late March.

Verizon Communications joined the list, and its stock climbed 3.6% after the company said it added more postpaid phone customers than it lost during a first quarter for the first time since 2013. It also raised its forecast for profit growth this year, even though its revenue for the first quarter fell short of analysts’ expectations.

Domino’s Pizza helped drag on the market and fell 7.7% after it reported weaker profit and revenue for the latest quarter than analysts expected.

Several of Wall Street’s most influential stocks are scheduled to deliver their profit reports this week, including Alphabet, Amazon, Meta Platforms and Microsoft all on Wednesday. Apple will report on Thursday.

In the bond market, Treasury yields held relatively even with the rise in oil prices. The yield on the 10-year Treasury note inched up to 4.32% from 4.31% late Friday.

The Federal Reserve will announce its latest move on interest rates Wednesday, and the consensus expectation among traders is that it will hold rates steady. Lower rates would help give the economy a boost, but they would also threaten to worsen inflation when oil prices are in flux and tariffs are also threatening to raise prices.

Wednesday will likely be the final meeting where Chair Jerome Powell will lead the Fed. His term as chair is scheduled to expire next month, and Trump has already named his nominee to replace Powell, Kevin Warsh.

The European Central Bank, Bank of Japan and Bank of England will likewise be announcing rate decisions this week.

In stock markets abroad, indexes were mixed in Europe following a stronger finish in Asia. South Korea’s Kospi jumped 2.2%, and Japan’s Nikkei 225 rose 1.4% for two of the world’s bigger moves.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed to this report.

Trader Thomas Ferrigno, left, and specialist Dilip Patel work on the floor of the New York Stock Exchange, Thursday, April 23, 2026. (AP Photo/Richard Drew)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), right, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Monday, April 27, 2026. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), right, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, April 24, 2026. (AP Photo/Ahn Young-joon)

Trader Justin Flinn works on the floor of the New York Stock Exchange, Thursday, April 23, 2026. (AP Photo/Richard Drew)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), rear center, and the foreign exchange rate between U.S. dollar and South Korean won, rear left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Monday, April 27, 2026. (AP Photo/Ahn Young-joon)

A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top center left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, April 24, 2026. (AP Photo/Ahn Young-joon)

Options trader Matthew Hefter, center, works on the floor of the New York Stock Exchange, Thursday, April 23, 2026. (AP Photo/Richard Drew)