Pursuing a free trade deal with India will be a strategic priority if the National Party is voted to power in the general elections later this year, its leader Christopher Luxon said on April 18, 2023.
Existing trade agreements have enabled Kiwi businesses to access many Asian markets, but the island country has yet to finalise a direct deal with India as negotiations have dragged on for years.
“When you think about India being the third biggest economy in the world by 2030, we want to be able to deepen our trade relationship with India big time,” Luxon told The Indian Weekender at the India-NZ Summit in Auckland.
He pointed to Foreign Minister Nanaia Mahuta’s comment in 2022 that a trade deal “at this time is not a priority for New Zealand or India”, saying the Labour government has failed to tap into India’s massive economy.
"This sends a poor signal. It says New Zealand will no longer fight for the benefits that open trade delivers, and it says to India we don't think you're important enough to put the effort in," Luxon said.
He said “it’s important New Zealand as a small country isn't forgotten” as countries strike strategic partnerships with India. Australia hopes to complete by this year an ambitious, comprehensive trade deal with India that has been stuck in negotiations for over a decade.
“And we've seen Australia do it recently...the EU is pretty close to achieving it as well…We actually need to build relationships with the Indian government, have these conversations, and they will be hard and difficult. I get it. But actually, it's in both of our interest to be able to advance trade together,” he said.
Speaking to The Indian Weekender about the broad contours of the trade deal he envisions, Luxon pointed out key sectors that seemed an obvious fit.
“Look, people will often say about India that it's very difficult to get a deal that's got a dairy component to it…but we should keep trying in that space. But I think the opportunities are also sitting there when you think about Australian exporters that are selling lamb and wine, for example, into India without the trade barriers that New Zealand exporters have,” he said.
Luxon drew on his business experience from earlier roles at Unilever and Air New Zealand to point out the huge market opportunity India provides.
“We've got great products and services. Its rapidly burgeoning middle class, as you well know, within India…that's got a huge demand for New Zealand products…and, as I said, I know the country well, and it's just a huge opportunity that we just haven't yet realised in New Zealand, and we desperately need to do so,” he said.