India Free Trade finale brings odd pairings

India Free Trade finale brings odd pairings

The first bill finalised by Parliament under urgency this week enables the India Free Trade Agreement (FTA). The India Free Trade Agreement Legislation Amendment Bill was debated this week. The debates featured unusual political couplings and disagreements. Political foes voted together-both for the bill and against it.

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Voting in favour were National, ACT and Labour; voting against were New Zealand First, Greens and Te Pāti Māori. National and ACT both see the agreement as a boon for trade, agriculture and business.

In the third reading Trade Minister Todd McClay said; "This landmark agreement is good for our economy, good for our exporters, and good for New Zealand. I thank all those who have contributed to bringing us to this point, I thank the Labour Party for their support."

He had run through a litany of tariff level decreases and potential trade increases that could benefit (especially primary) industries.

"Kiwifruit will receive tariff-free access for a quota that grows to 15,000 tonnes over the next six years-four times more than we've ever sold India in a year-plus a 50 percent tariff reduction for any out-of-quota trade exports to India.

"Our exporters of sheep meat, wool, coal, and almost all forest goods will see tariffs immediately drop to zero from entry into force. Fish and seafood exporters will see the current 33 percent tariff eliminated on most goods over seven years. Mānuka honey tariffs will reduce from a whopping 66 percent to 16.5 percent over five years."

His thanks to Labour for their support was echoed with slightly less enthusiasm by speakers from Labour.

"This is not the agreement that Labour would have negotiated," Damien O'Connor said, "but it is an agreement and a big step forward for our country in terms of our connection with the world's most populous country."

O'Connor said "on balance" Labour supported the agreement, though they had wanted to make adjustments to the migrant aspects, including ensuring that "migrant exploitation could be addressed".

Unusually, the Greens and New Zealand First were aligned, voting against the FTA.

New Zealand First even filibustered the bill (worked to slow its progress) during the Committee of the whole House stage; unusual behaviour for a governing coalition party.

Their common concern was the aim to massively increase New Zealand investment into India. Steve Abel outlined it:

"It is the obligation that we shall promote foreign direct investment from New Zealand with the aim to increase foreign direct investment inflows to the value of $20 billion US ...That has to be achieved within 15 years."

Both National and Labour downplayed fears about the investment commitment. Labour's Vanushi Walters said, "this isn't a commitment in regard to the amount itself-the $33 billion-but it is a commitment to promote. It is an 'effort' clause."

Despite their joint opposition, New Zealand First and the Greens were not getting cosy. Unlike the Greens, New Zealand First was concerned about increased immigration.

"There are uncapped and open-ended migration pathways that will impact New Zealand and New Zealanders," said Dr Steve Wilson.

Green MP Steve Abel repeatedly clarified where their opposition differed from New Zealand First's.

"New Zealand First and the Greens ... are both economic nationalists. We are not racial nationalists in the Green Party, however, and we're not militarists."

He was even blunter earlier, "we're not going to make a xenophobic attack on it, because we don't believe in a race-baiting nationalism, which is the last refuge of the scoundrel; we believe in criticising it on economic grounds."

The Green Party had their own particular concerns on behalf of workers in India. Steve Abel worried that New Zealand would unfairly damage India's dairy sector with a tsunami of butter.

"Do you know how many dairy farmers there are in India? About 80 million dairy farmers. Most of those dairy farmers own between two and three cows. Some only own one cow. Many of them are landless. They are subsistence farmers."

The bill was debated though its three final stages to pass into law, and now awaits the Royal Assent.

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