A dramatic turn in New Zealand’s parliamentary politics has breathed new life into the eagerly awaited New Zealand-India Free Trade Agreement. Congress leader Shashi Tharoor praised the Labour Party’s decision to support the crucial bill, describing it as a breakthrough that sidesteps coalition discord.
Concluded just last month, this long-negotiated FTA represents a cornerstone of economic partnership, with negotiations formally launching on March 16, 2025. Tharoor took to X to commend Labour for propping up Prime Minister Christopher Luxon’s push amid resistance from New Zealand First allies.
Labour framed their support as aligning with ongoing initiatives to strengthen India relations, insisting that blocking ties with a powerhouse economy would be folly. While wary of dairy exclusions, they stressed the agreement’s value in unlocking opportunities in tech, education, and wine.
Political maneuvering saw National concede to a yearly review clause, paving the way for future tweaks on sensitive issues like dairy quotas and eco-standards. Tharoor noted this flexibility as key to bridging divides.
Parliamentary hurdles remain, with the bill set for committee scrutiny and a projected super-majority approval by mid-2026 from National, ACT, and Labour votes. Trade could flow as early as late this year.
Symbolically potent, the FTA eradicates all Indian export tariffs and pledges $20 billion in investments across 15 years. For India, it’s a strategic pivot, broadening trade horizons and underscoring a commitment to multifaceted global engagements.