Andrew Dickens: The India Free Trade Agreement remains uncertain

Let's talk about something that is very crucial to our economy and that's the India Free Trade Deal. We are an exporter. We live because of what we export from the farms and in particular free trade deals help. So New Zealand's major exporters turned up the pressure on Parliament yesterday, urging all political parties to support the country's proposed free trade agreement with India. 28 exporters and industry groups including Federated Farmers, Zespri, Seafood New Zealand, Beef + Lamb New Zealand, they all signed an open letter organised by Business New Zealand and they described this free trade agreement as a strategic necessity for New Zealand's economic security. 

Remember the Government confirmed that negotiations with India wrapped up way back in December, but they still need sign off. Support from Winston Peters and New Zealand First has been withheld, largely over immigration concerns. What's in this deal that could allow even more immigrants from India to come here, and will they be able to drag a whole lot of their family with them? That's all been disputed in many ways, but it's enough to turn Winston off the deal. That means the Government now needs Labour's backing to pass the deal and Labour says, well we don't know the deal. We don't know all the deal. We're still waiting for key details before making a decision. So they're withholding their support as well. So now the Government has a negotiated free trade deal, but it doesn't have the numbers in Parliament to pass it, so that's a roadblock. 

Business New Zealand chief executive Catherine Rich says bipartisan support, support from all the political parties is essential for New Zealand's long term trade stability. She argues that with global protectionism all over the place, supply chain uncertainty all over the place, we need access to India, which is expected to become the world's third largest economy by 2030. There's a lot of business there, there's a lot of money and here we're given a foray into it. She says this is vital for exporters across horticulture, meat, seafood, wine, honey, wood products, technology, and services. That's a lot of our economy. Export New Zealand executive director Joshua Tan says the deal would be a major win for the wider economy and he warns that delays could leave New Zealand exporters at a disadvantage because India's doing other trade agreements, including with the European Union and some of the stuff that they've given to us, they won't give to us, they will give to someone else because they're canny negotiators. They say sign this and to sign it quick, here's a couple of things that'll be in your favour, but if you don't sign it, we'll take those away, we'll give them to somebody else. So we’re being held under the gun. 

The Meat Industry Association, who also signed the letter, says the agreement would remove a 30% tariff on sheep meat and deliver gains for wool and pharmaceuticals and blood products. Nathan Guy's the chair there, he says New Zealand's primary sector needs this deal more than ever.  

This letter, New Zealand First leader Winston Peters has criticised it. He says it's breathtaking that businesses would endorse an agreement without seeing the full text. He says they're wanting us to sign a contract blindfolded. Winston says his office has asked Business New Zealand and Catherine Rich whether the signatories have actually read the agreement and claims that they have not received a clear answer. Meanwhile, what's Labour up to, eh? Labour leader Chris Hipkins says his party recognises of course the potential benefits of a free trade deal like this for exporters, but he says the Government must address what he calls issues and inconsistencies before Labour can commit its support. He says that Labour's been seeking clarification for nearly two months, so if they've been asking for two months, how come they haven't got that clarification? Do you think National's trying to hide something? Is there something in there? I don't know. But for now, the India Free Trade Agreement remains uncertain, exporters are calling for urgency, New Zealand First demands transparency, and Labour is waiting for answers. 

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