Key Takeaways
- The Labour Party has not yet decided whether to support the government’s free trade agreement (FTA) with India.
- The agreement has significant wins for several industries, but limited gains for dairy.
- The government is confident that it can pass the legislation with bipartisan support, despite needing Labour’s backing.
- The deal has been described as a "high-quality" agreement by the Prime Minister, but a "low-quality" deal by NZ First leader Winston Peters.
- The agreement has the potential to grow two-way trade between New Zealand and India, which already totals over $3 billion each year.
Introduction to the Free Trade Agreement
The Labour Party has acknowledged that the government’s free trade agreement (FTA) with India is a "good step forward", but has not yet committed to supporting it. The party’s trade spokesperson, Damien O’Connor, stated that he was not in a position to say whether a better deal could have been achieved by waiting, and that the party would need to see all the details before making a final decision. The government confirmed the conclusion of free trade negotiations with India on Monday, with significant wins for several industries, but limited gains for dairy.
Government’s Response to the Agreement
The government is confident that it can pass the legislation with bipartisan support, despite needing Labour’s backing. Prime Minister Christopher Luxon stated that he was confident that the government would be able to pass the legislation, and that he had "tried to deal" with NZ First’s objections. He also rejected the notion that the deal was rushed through, and said that "more time doesn’t drive a better deal". Trade Minister Todd McClay said that the agreement was in the best interest of New Zealand, and that it would deliver thousands of jobs and billions of dollars worth of new exports.
Reaction from Other Parties
The reaction from other parties has been mixed, with NZ First leader Winston Peters describing the deal as a "low-quality" agreement and withholding his support. The ACT Party, on the other hand, has come out in support of the agreement, with trade spokesperson Dr Parmjeet Parmar saying that it was a "massive moment for New Zealand". Dr Parmar stated that the agreement signalled that New Zealand was serious about engaging with one of its most important economic partners, and that it had the potential to grow two-way trade between New Zealand and India significantly.
Implications of the Agreement
The agreement has significant implications for New Zealand’s trade relationships with India, and has the potential to grow two-way trade between the two countries. The agreement covers a wide range of issues, including trade in goods and services, investment, and economic cooperation. While some industries, such as dairy, may be disappointed with the limited gains, other sectors are likely to benefit from the agreement. The government has stated that the agreement will deliver thousands of jobs and billions of dollars worth of new exports, and that it is a key part of its plan to grow the economy and increase exports.
Next Steps
The next steps for the agreement will depend on the support of the opposition parties, particularly Labour. The government will need to rely on Labour’s support to pass the legislation, and will need to convince the party that the agreement is in the best interests of New Zealand. The Labour Party has stated that it will need to see all the details of the agreement before making a final decision, and that it will consider the implications of the agreement for New Zealand’s trade relationships and economy. The outcome of the agreement is still uncertain, and will depend on the negotiations between the government and the opposition parties.