Key Takeaways
- The New Zealand government has announced a free trade agreement with India, but the deal faces opposition from several parties, including NZ First and Te Pāti Māori.
- The agreement has been welcomed by some industry groups, but dairy exporters have expressed disappointment with the marginal gains in the sector.
- The deal’s passage is uncertain, with Labour and the Greens considering their options and National’s other potential supporters ruling themselves out.
- The agreement has been criticized for a lack of transparency and consultation, as well as concerns over immigration and Treaty of Waitangi provisions.
- The outcome of the deal’s passage will depend on the political manoeuvrings of the various parties involved, with National seeking to secure the necessary support to bring the agreement into force.
Introduction to the Free Trade Agreement
The announcement of a free trade agreement between New Zealand and India has been hailed as a significant achievement by the government, but the deal’s passage is far from certain. The agreement, which was announced by Prime Minister Christopher Luxon and Trade Minister Todd McClay, has been welcomed by some industry groups, but has also been criticized by several parties, including NZ First and Te Pāti Māori. The deal’s uncertain fate has put the spotlight on Luxon’s leadership and has given Labour and the Greens the opportunity to exact political concessions from National in return for their support.
The Politics of the Free Trade Agreement
The free trade agreement has been a long time in the making, with previous governments attempting to negotiate a deal with India but ultimately failing. Luxon’s commitment to securing a deal in his first term was seen as ambitious, and some have questioned whether the agreement is the best possible deal for New Zealanders. The deal’s announcement has been criticized as politically motivated, with Luxon seeking to deliver on a campaign promise. However, the agreement’s passage is not guaranteed, with several parties expressing opposition to the deal. NZ First leader Winston Peters has been quick to voice his opposition, labelling the deal as "bad" and criticizing the concessions granted to India.
Opposition to the Deal
The opposition to the deal is not limited to NZ First, with Te Pāti Māori also ruling themselves out of supporting the agreement. The party’s co-leader, Rawiri Waititi, has criticized the deal for a lack of transparency and consultation, as well as concerns over immigration and Treaty of Waitangi provisions. The Greens have also expressed concerns about the deal, although they are keeping their options open. The party’s trade spokesman, Lawrence Xu-Nan, has called for the full details of the agreement to be publicly released, citing a lack of transparency and consultation. Labour has also expressed disappointment with the deal, with trade spokesman Damien O’Connor criticizing the marginal gains in the dairy sector.
The Potential Consequences
The potential consequences of the deal’s passage are significant, with National seeking to secure the necessary support to bring the agreement into force. The party may view the Greens as not worth the effort, given the lack of contact between the two parties on the deal. However, Labour and the Greens will have to carefully weigh the potential to extract gains from National against the downsides that would come with being seen as obstructing the deal. The outcome of the deal’s passage will depend on the political manoeuvrings of the various parties involved, with National seeking to secure the necessary support to bring the agreement into force.
The Economic Implications
The economic implications of the deal are also significant, with the agreement representing a significant opportunity for New Zealand businesses to access the Indian market. The deal has been welcomed by some industry groups, who see it as a significant opportunity for growth and expansion. However, the deal’s marginal gains in the dairy sector have been criticized by dairy exporters, who had been hoping for more significant concessions. The deal’s passage will also have implications for New Zealand’s trade relationships with other countries, with the agreement representing a significant step forward in the country’s trade agenda.
Conclusion
In conclusion, the free trade agreement between New Zealand and India is a significant development in the country’s trade agenda, but its passage is far from certain. The deal has been criticized by several parties, including NZ First and Te Pāti Māori, and its fate will depend on the political manoeuvrings of the various parties involved. National will need to secure the necessary support to bring the agreement into force, and will have to navigate the complex web of opposition and criticism that has surrounded the deal. The outcome of the deal’s passage will have significant implications for New Zealand’s trade relationships and economy, and will be closely watched by businesses and observers alike.
