Labour to support India free trade agreement but issue warning over investment clause
Labour to support India free trade agreement but issue warning over investment clause
Labour leader Chris Hipkins has written to PM Christopher Luxon to say Labour would support legislation to pass the India free trade deal.
Hipkins confirmed the move at a press conference along with his party's trade spokesman Damien O'Connor at 10am.
He said the Government had committed to provide legal resources to protect those who could be victims of exploitation and to speed up visa processing.
Hipkins said he still remained concerned about the $34 billion private sector investment commitment in the deal, saying it was an "unrealistic target".
He said he wouldn't stop the deal being passed because of concerns about the target, but he said businesses should be aware of the potential for "clawback" from India if it was not met.
In confirming his party's stance, Hipkins also claimed the Government had been cavalier in how it had engaged with Labour over the deal.
Hipkins also warned businesses to proceed at their own risk and do their own due diligence.
"New Zealand businesses need to go into this with their eyes wide open," he said.
Labour leader Chris Hipkins (centre) has written to PM Christopher Luxon to say Labour would support legislation to pass the India free trade deal. Photo / Mark Mitchell
"The deal cuts tariffs, and increases market access for New Zealand exporters, and that is very welcome. But the $33b investment target is unrealistic and missing it could see benefits clawed back in 15 years.
"While Todd McClay says it's all aspirational, India is already setting up oversight and has signalled it will enforce the clawback."
He said it was "not the deal" that Labour would have tried to negotiate.
"But we value our relationship with India and the positive contributions of our Indian communities."
Hipkins said he wasn't concerned about the level of immigration afforded under the agreement.
Immigration had been a key factor in NZ First opposing the deal; with Hipkins hitting out in how they had characterised the potential consequences of the agreement.
At the press conference, O'Connor defended how long the party had taken to assess the agreement.
"I think it would be irresponsible… to make a judgment if we didn't have as much information as we should have," he said.
He said the party had received a key Cabinet paper on Monday.
Prime Minister Christopher Luxon's Government now has support from Labour for the FTA with India. Photo / Mark Mitchell
The Government doesn't need Labour's support to sign the free-trade agreement (FTA) with India.
However, National and Act will need its backing when it comes to passing legislation to enact parts of the agreement, as New Zealand First firmly opposes it.
Hipkins had previously reserved the party's position on the FTA, saying he and a select group of MPs continued to meet with officials to better understand the deal.
Labour has voiced several concerns about the agreement, including an apparent commitment to "promote" $34 billion worth of New Zealand private sector investment in India.
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