Congress MP Shashi Tharoor praised the New Zealand Labour Party’s decision to support the enabling legislation for the New Zealand-India Free Trade Agreement (FTA). This move comes after the conclusion of a significant FTA between India and New Zealand last month, signifying a crucial economic and strategic achievement. Negotiations for this agreement began on March 16, 2025.
Tharoor highlighted that the Labour Party’s backing of the deal is crucial for New Zealand Prime Minister Christopher Luxon, especially with the opposition from New Zealand First, who have disagreed and activated the “agree to disagree” clause. Labour emphasized their commitment to strengthening ties with India, stating that obstructing a deal with the rapidly growing Indian economy would be irresponsible. Despite concerns over the exclusion of core dairy products, Labour argued that progress in other sectors like education, technology, and wine is valuable.
In exchange for their support, the ruling National Party made political concessions to secure Labour’s votes, including incorporating a one-year review mechanism into the agreement. This provision allows for further enhancements, particularly regarding dairy and environmental standards, with a special focus on migration provisions significant for India, as highlighted by Tharoor.
The enabling legislation will now undergo a parliamentary Committee process and is anticipated to receive broad support, including a “super-majority” from National, ACT, and Labour, in the first half of 2026. Tharoor expressed optimism about the potential business opportunities with New Zealand by the end of the year, emphasizing the symbolic importance of finalizing an FTA with a smaller economy like New Zealand as a significant step for India in expanding its trade networks and diversifying its options.
The FTA between India and New Zealand is set to eliminate duties on all Indian exports, accompanied by a $20 billion investment commitment over 15 years to enhance long-term economic and strategic cooperation.
