Labour to support India free trade agreement

Labour will support the free trade agreement between New Zealand and India but warns 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,” Labour Leader Chris Hipkins said.

“The deal cuts tariffs, and increases market access for New Zealand exporters, and that is very welcome. But the $33 billion 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.

“This is not the deal Labour would have negotiated, but we value our relationship with India and the positive contributions of our Indian communities,” Chris Hipkins said.

Labour has secured the following commitments from the Government:

• Expanded labour inspectorate at the next budget: Funding for at least 14 additional staff in the labour inspectorate focused on migrant worker exploitation and serious and complex immigration offending.
• Faster visa changes: Commitments both written and verbal to speed up the processing of Variation of Condition for those visa holders seeking to change employer.
• Modern Slavery Bill progress: The Government is to prioritise the Modern Slavery Bill, ensuring it passes its first reading before the election, with a commitment to resourcing Community Law to provide legal advice.

“Labour’s position on the FTA is settled. Our expectations, both on implementation of the commitments above, and on how this Government conducts itself toward the communities affected, are not negotiable,” Chris Hipkins said