by Sudesh Kissun/Rural News
New Zealand exporters are putting the blowtorch on politicians to get the free trade deal with India over the line.
But it seems that the two main political parties are no closer to agreement.
An open letter signed by 28 exporters, including Beef + Lamb NZ, the Meat Industry Association and Apples & Pears NZ, calls for all MPs to support the agreement and provide certainty for growers, exporters and regional New Zealand.
National concluded the FTA in December but is yet to sign the deal because coalition partner New Zealand First withdraw support.
While the two main political parties are bickering, NZ exporters are eagerly waiting to tap into the market of 1.4 billion people.
Labour leader Chris Hipkins says he’s waiting for a government response to their concerns.
“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 told Rural News.
“Once we’ve received the details and worked through all the advice, we will discuss as a caucus and decide about whether to support the legislation.”
Trade Minister Todd McClay says that it was pleasing to see the business and export community come out in such strong support of the deal and the opportunities it brings to all of New Zealand.
“I note support is growing, with twice the number of organisations in support since Monday,” he told Rural News.
McClay says the Government will follow the normal process as with all trade agreements through the select committee process.
“This offers the public and all parties the opportunity to scrutinise the agreement in open prior to implementing legislation being considered.
“We have engaged with Labour for four months and the Prime Minister has committed for Ministers and officials to remain engaged with them in good faith.”
But for farmers and growers, the delay in getting the FTA over the line is frustrating.
For the pipfruit sector, the milestone achievement in the proposed FTA includes a quota for New Zealand apples to receive a 50% reduction on tariffs, from 50% to 25%, during the window from 1 April to 31 August, focusing access on counter-seasonal supply to India’s own apple industry. The reasonable quota allows for significant growth over the next six years.
Pear access into India also received a 50% reduction on tariffs, with no quota limitations.
New Zealand was the first nation to secure the inclusion of apples within an FTA with India, something New Zealand Apples and Pears chief executive Danielle Adsett describes as “no small feat”.
“India has its own, vibrant apple industry that they are rightly protective of,” Adsett told Rural News.
“The inclusion of apples within this FTA is a huge win for our sector. Our industry was deeply engaged with the negotiation team during discussions, and we are confident in the result for our sector.
“However, timing is critical. India has signed further agreements since ours and if the ratification of ours is pushed out to post-election, then we run the very real risk of losing our edge.”
For his part, Winston Peters is doubling down on his opposition to the deal.
He’s also criticised the business sector for signing the open letter to politicians.
“How on earth can there be any sort of proper analysis of the FTA if they haven’t even read the agreement?
“This is tantamount to those businesses signing a contract blindfolded.
“This is an appalling image for the professionalism of New Zealand business leadership.”
