Exporters urge parties to back New Zealand-India FTA
- Sydney (13 April)
Industry group ExportNZ – along with 44 exporters and peak body groups – has called on all political parties to support the New Zealand-India Free Trade Agreement (NZ-India FTA), which the two countries negotiated in December but have yet to finalise.
“An FTA with India is not a luxury; it is a strategic necessity for our economic security,” the group – including Beef + Lamb New Zealand, Federated Farmers, and NZ Tech – said in a letter on 13 April.
“This agreement was hard fought and represents New Zealand’s best opportunity to secure meaningful access to one of the world’s most important growth markets,” the group added.
India will cut tariffs on 95% of New Zealand exports over time under the deal, Minister for Trade and Investment Todd McClay said on 22 December.
New Zealand has agreed to create a three-year temporary employment scheme covering 1,667 workers each year and promote investment into India, New Zealand’s Ministry of Foreign Affairs and Trade (MFAT) said.
New Zealand First – a member of New Zealand’s current governing coalition – has opposed the NZ-India FTA. “This is a bad deal for New Zealand. It gives too much away, especially on immigration, and does not get enough in return for New Zealanders, including on dairy,” the party’s leader, Winston Peters, said in December.
The New Zealand Government cannot finalise the NZ-India FTA without the support of either the Labour Party or the Green Party, because of New Zealand First’s position.
But the Labour Party will only consider supporting the NZ-India FTA if the government strengthens migrant worker protections, safeguards educational standards, provides official advice related to the deal, and provides clarity about New Zealand’s investment promotion obligations.
The party is worried about the implications of some NZ-India FTA provisions, particularly the requirement for New Zealand businesses to invest billions of dollars in India over the next 15 years, Labour leader Chris Hipkins said on 13 April.
The NZ-India FTA includes a “commitment for New Zealand to promote investment into India with the aim to increase private sector investment by US$20 billion (A$28 billion) over 15 years,” according to MFAT.
But, on 23 December, India’s Minister for Commerce and Industry, Piyush Goyal, wrote that “New Zealand has committed Foreign Direct Investment of USD 20 billion over the next 15 years,” on his website.
By Avinash Govind