The Labour Party says it will support the India free trade agreement, but has reservations.
New Zealand First had opposed the agreement, which meant National and ACT required the support of Labour to pass legislation allowing the deal.
This means the pathway for the agreement to be enacted has now been cleared for the Government.
The agreement is due to be signed on Monday by Trade Minister Todd McClay, who is set to travel to New Dehli over the weekend. It still needs to pass through Parliament.
National and Labour have been back and forth over advice on the agreement.
Speaking today in Parliament, Labour leader Chris Hipkins reiterated his party's key concern over a figure within the agreement to promote US$20 billion (NZ$33 billion) in private sector investment to India over 15 years.
"The deal cuts tariffs, and increases market access for New Zealand exporters, and that is very welcome. But the $33 billion investment target is unrealistic and missing it could see benefits clawed back in 15 years."
"While Todd McClay says it’s all aspirational, India is already setting up oversight and has signalled it will enforce the clawback.
"This is not the deal Labour would have negotiated, but we value our relationship with India and the positive contributions of our Indian communities."
He said businesses needed to proceed "at their own risk" and with their "eyes wide open".
Despite this concern, Hipkins said his party's position on the FTA had now been "settled".
"Our expectations, both on implementation of the commitments above, and on how this Government conducts itself toward the communities affected, are not negotiable."
Hipkins said Labour had secured the following commitments from the Government on the FTA:
- Expanded labour inspectorate at the next budget: Funding for at least 14 additional staff in the labour inspectorate focused on migrant worker exploitation and serious and complex immigration offending.
- Faster visa changes: Commitments both written and verbal to speed up the processing of Variation of Condition for those visa holders seeking to change employer.
- Modern Slavery Bill progress: The Government is to prioritise the Modern Slavery Bill, ensuring it passes its first reading before the election, with a commitment to resourcing Community Law to provide legal advice.
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