Source: Radio New Zealand
Prime Minister Christopher Luxon meets India’s Prime Minister Narendra Modi in New Delhi on 17 March 2025. Piyal Bhattacharya / The Times of India via AFP
Some of New Zealand’s top exporters and business associations have signed an open letter calling on all political parties to back New Zealand’s free trade agreement with India.
The letter described the FTA as a “strategic necessity” for New Zealand’s economic security, but New Zealand First has hit back at the signatories, saying their involvement is an “appalling commentary.”
The government confirmed negotiations had concluded with India in December, but New Zealand First withheld its support over immigration concerns.
It means the government needs Labour’s support to pass the deal through the House, but Labour is still to decide whether it will back the deal.
The open letter, organised by BusinessNZ, was signed by 28 exporters and industry associations, such as Federated Farmers, Zespri, Seafood New Zealand, and Beef and Lamb New Zealand.
The letter said trade was critical to New Zealand’s prosperity, and the FTA was the next significant step forward.
“In an increasingly uncertain global environment marked by rising protectionism, geopolitical tension, and supply chain disruption, New Zealand cannot afford to stand still. Securing better access to India will help build resilience, spread risk, and strengthen our economic position,” the letter said.
“An FTA with India is not a luxury; it is a strategic necessity for our economic security.”
BusinessNZ chief executive Katherine Rich said bipartisan support underpinned the strength of New Zealand’s trade.
“New Zealand relies on global markets to drive growth, support jobs and lift incomes,” she said.
“That only works when there is consistency and confidence in our trade settings. That’s why we’re making this call to all political parties today.”
BusinessNZ chief executive Katherine Rich. Supplied
The open letter refers to the benefits of the Free Trade Agreement to a number of sectors, including horticulture, sheep meat, seafood, wine, honey, wood products, seeds and natural fibres, machinery, digital technology and services.
ExportNZ, which sits within the BusinessNZ network, said the deal would be a “major win” for exporters and the wider economy.
Its executive director, Joshua Tan, told Midday Report the letter was aimed at all political parties, not just Labour or New Zealand First.
“We want to have trade seen as a bipartisan, non-political issue here. We think that all political parties need to sign this deal and agree to it,” he said.
“India is on track to become the world’s third largest economy by 2030. Securing fair access to a market the size of India’s backs our farmers, growers, manufacturers, innovators and service providers, as well as the communities that depend on them.”
Tan said the sooner the deal was in place, the better.
“If we are too slow, sectors can be left at a disadvantage to other deals that India… are completing. Namely, the EU deal, which offers better access to the wine exporters, for example,” he said.
“So if we do get this deal in force before that, then we also stand to benefit from the access that the EU has negotiated. That’s why speed is the key here.”
The Meat Industry Association was one of the signatories.
Its chair Nathan Guy told RNZ political parties had a long history of supporting free trade agreements together.
Guy said the deal would remove a 30 percent tariff for the sheep meat sector, and was also significant for wool, pharmaceuticals, and blood products.
“It’s a fantastic deal for our primary sector at a time where there’s geopolitical issues raging around the world, we need this deal more than ever,” he said.
“We’re calling on the government to sign the deal, and we’re calling on political parties to get behind and back it.”
New Zealand First leader Winston Peters. RNZ / Mark Papalii
“Signing a contract blindfolded” – Winston Peters
New Zealand First leader Winston Peters said the letter was a “breathtaking” position for BusinessNZ to take.
“How they and the 28 other businesses and associations could have signed up to support the India FTA without knowing what is in it is an appalling commentary on them all,” Peters posted on social media.
“How on earth can there be any sort of proper analysis of the FTA if they haven’t even read the agreement?”
Peters said his office had asked that question to BusinessNZ, but had not received a response.
“This is tantamount to those businesses signing a contract blindfolded,” he said.
“If it is true that this support for the FTA is not based on the actual text but instead relies on media reports and conflicting perspectives from different parties, it is a terrible indictment on how they operate.”
Labour leader Chris Hipkins RNZ / Mark Papalii
“Issues and inconsistencies” – Labour
Labour leader Chris Hipkins said Labour had seen the open letter “from the businesses which would benefit from the trade agreement”, and it was important that any deal worked in the long-term interests of all New Zealanders.
Hipkins said Labour had been asking the government for a response to its concerns for almost two months, but the government was yet to provide the detail Labour had requested.
“There are issues and inconsistencies that still need to be clarified by the government to ensure any deal works in the long-term interest of New Zealanders,” Hipkins said.
“Once we’ve received the details and worked through all the advice, we will discuss as a caucus and make a decision about whether to support the legislation.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
