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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Episode Transcript

Speaker 1 (00:06):
You're listening to the Kerrywood and Mornings podcast from News
Talks ad B.

Speaker 2 (00:11):
Let's talk about something that is very crucial to our economy,
and that's the India free trade deal. We are a exporter.
We live because of what we export from the farms,
in particular, free trade deals. Help Yes or No. Eight
hundred eighty ten eighty is a number to phone. So
New Zealand's major exporters turned up the pressure on Parliament yesterday,

(00:34):
urging all political parties to support the country's proposed free
trade agreement with India. Twenty eight exporters and industry groups
including Fed Farmers, Zesprey's Seafood, New Zealand, Beef and Land
New Zealand. They all signed an open letter organized by
Business New Zealand And. They described this free trade agreement
as a strategic necessity for New Zealand's economic security. So

(00:56):
remember the government confirmed the negotiations with India wrapped up
way back in December, but they still need sign off
support from Winston Peters and New zeald Them 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

(01:18):
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 Labors 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 worthholding their support as well. So now the government

(01:38):
has a negotiated free trade deal, but it doesn't have
the numbers in Parliament to pass it, so that's a roadblock.
So 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, and she argues that with
global protectionism all over the place, supply chain uncertainty all

(02:01):
over the place, we need access to India, which is
expected to become the worldld's third largest economy by twenty thirty.
There's a lot of business there, there's a lot of
money and here we're given a foray into it now.
She says this is vital for exporters across horticulture, meat, seafood, wine, honey,

(02:22):
wood products, technology and services. That's a lot of our economy.
Export New Zealand Executive director Joshua Tan says the deal
will be a major win for the wider economy, and
he warns that delays could leave New Zealand exporters at
a disadvantage because India is 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

(02:45):
will give to someone else because then they're canny negotiators.
They say sign this and to sign it quick. Here's
a couple of things that will be in your favor.
But if you don't sign it, we'll take those away.
We'll give them to somebody else. So being held under
the gun. The Meat Industry Association, who also signed the letter,
says the agreement will remove a thirty percent tariff on

(03:06):
sheep meat and deliver games 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 so
this letter. New Zealand First Leader Wisdom Peters has criticized it.
He says it's breathtaking that businesses would endorse an agreement

(03:27):
without seeing the full text. He says they're wanting us
to sign a contract blindfolded. Winston says his office has
us Business New Zealand and Catherine Ridge whether the signatories
have actually read the agreement and claims that they have
not received a clear answer. Meanwhile, what's Labor up to eh?

(03:48):
Labour leader Chris Hipkins says his party recognizes, 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 it support.
He says that Labour's been seeking clification for nearly two months.
So if they've been asking for two months, how come

(04:09):
they haven't got that clarification. Do you think that Nashal'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
demand transparency and Labor is waiting for answers.

Speaker 1 (04:28):
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