New Zealand Labour Party Supports India Trade Deal

New Zealand's Labour Party announced its support for a free trade deal with India, facilitating parliamentary approval despite opposition from one coalition partner. The agreement, set for signing in Delhi, will remove tariffs on 95% of New Zealand's exports to India. Significant investments are planned over the next 15 years.

The opposition Labour Party of New Zealand declared its backing for a free trade deal with India on Thursday. This development is pivotal as one government coalition member opposed the agreement, requiring Labour's support for parliamentary ratification.

Labour leader Chris Hipkins acknowledged that while this is not a negotiable deal by Labour's standards, the party values the robust relationship with India and the role of Indian communities in New Zealand. The deal, concluded in December, will see tariffs eliminated or reduced on 95% of New Zealand's exports to India, with over half of the products duty-free from the pact's inception. In turn, New Zealand will provide duty-free access to Indian goods.

Additionally, New Zealand has committed to investing $20 billion in India over the next 15 years. Despite New Zealand First's opposition, the National Party and ACT, both in the government, back the trade agreement. Cross-party support emphasis was echoed by New Zealand exporters and businesses, highlighting the historically bipartisan nature of trade deals in the country.