New Zealand's long-awaited free trade agreement with India will be signed next week, marking a major milestone in trade relations between the two countries.
By Penny Smith of RNZ
Trade and Investment Minister Todd McClay confirmed legal verification of the agreement has been completed, with both governments agreeing to formally sign the deal on April 27 in New Delhi.
The agreement, first concluded in December, would give New Zealand exporters access to a market of around 1.4 billion people, in what the Government has called a "once-in-a-generation'' opportunity.
The agreement is set to be signed in the first half of next year. (Source: 1News)
McClay said the deal would eliminate or reduce tariffs on 95% of New Zealand exports to India, which he says is one of the highest levels secured in any Indian trade agreement.
He said more than half of exports, including lamb, wool and many forestry products, would become duty-free immediately, rising to 82% over time.
McClay said the agreement would help level the playing field for New Zealand exporters competing in India, where other countries already benefit from lower tariffs.
''This allows New Zealand businesses to compete on equal footing in one of the world's fastest-growing economies."
The signing would trigger the formal parliamentary process, with the full text of the agreement and a national interest analysis to be tabled in Parliament and reviewed by a select committee.
The public would also be able to make submissions before any enabling legislation was passed.
Government 'playing politics' with trade policy, Labour
Labour leader Chris Hipkins accused the Government of ''playing politics'' with trade policy, adding that it did not currently have majority support in Parliament for the agreement.
"Signing a free trade agreement without majority backing would be recklessly irresponsible," he said.
Hipkins said Labour wanted to ensure the deal did not leave New Zealand worse off.
McClay rejected that criticism, saying the process followed the same pathway used for previous agreements and did not force parties to support it.
He said there had been extensive engagement with opposition parties and coalition partners and that scrutiny through Parliament would allow all New Zealanders to assess the deal.
Chris Hipkins noted Prime Minister Christopher Luxon was committed to a deal one of his coalition partners had refused to support. (Source: 1News)
'Tens of millions' of dollars in additional exports
The agreement also included provisions for limited numbers of skilled Indian workers to enter New Zealand on temporary visas, alongside expanded access for New Zealand goods such as kiwifruit, apples and mānuka honey.
Business groups and exporters had broadly welcomed the deal, saying it would create new opportunities in a rapidly growing market.
New Zealand First leader Winston Peters had criticised that support, labelling the move "breathtaking" and akin to "those businesses signing a contract blindfolded."
Peters had also raised immigration concerns.
McClay defended the arrangement, saying that workers would fill genuine skill shortages and would be subject to New Zealand's standards and requirements.
''We have a need for many of these workers in the economy,'' he said.
If ratified, the government said the agreement could deliver tens of millions of dollars in additional exports, particularly through improved access for sectors like wine and services.
The morning's headlines in 90 seconds, including severe flooding in Wellington, and Christopher Luxon’s digging in. (Source: 1News)
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