India free trade agreement: Zespri welcomes deal as kiwifruit tariffs slashed
Story Summary
AI
The India free-trade agreement has now been signed in New Delhi overnight, allowing the deal to proceed through Parliament despite ongoing political uncertainty. This development sets up a competitive race against the European Union for favoured nation access to Indian markets.
Labour has ultimately decided to back the agreement, relieving concerns from business representatives who were worried about potential legislative delays. However, Labour maintains its reservations about the ambiguous commitment requiring New Zealand to "promote" private-sector investment in India worth US$20 billion ($34 billion) over 15 years. The party's core concern remains that India could potentially nullify the agreement after 15 years if it determines New Zealand didn't adequately promote the required investment levels, potentially clawing back benefits at businesses' expense.
New Zealand's free-trade agreement with India is set to be signed on Monday, but Labour remains undecided on whether to support the deal, citing concerns about investment commitments. Labour leader Chris Hipkins indicated the party is still in discussions with the government "in good faith" but could not specify how close they are to finalizing their position.
While the National-led government doesn't require Labour's support to sign the FTA, it will need Labour's backing to pass the necessary legislation to enact the agreement, as coalition partner New Zealand First firmly opposes the deal. The agreement includes an aspiration for India to invest $33 billion in New Zealand over 15 years, though there appears to be skepticism about whether this target will be achieved, with one observer noting they would "be very surprised if we get anywhere in cooee of that" figure.
AI-generated summaries from source articles. Updated as new sources are added.
Source Coverage
India free trade agreement: Zespri welcomes deal as kiwifruit tariffs slashed
The new trade deal with India will save kiwifruit growers millions.
Read on Herald→India trade agreement to be unveiled at Parliament within hours
The signing in New Delhi overnight means the deal can go through Parliament - setting up a race against the EU for Favoured Nation access.
Read on RNZ→
India free-trade agreement: Businesses unconcerned about risk of Government’s $34b commitment to promote investment in India
Industry groups welcome Labour's backing of the India trade deal at the eleventh hour.
Read on Herald→India free-trade agreement: Labour still concerned about investment commitment, FTA being signed on Monday
The Trade Minister believes the agreement will end up getting Labour's support.
Read on Herald→