New India trade deal launches as political rivals set aside differences

The India Free Trade Agreement officially came into force this week, bringing together cross-party political figures to celebrate the historic deal.

Political Cooperation

With a looming election, political rivals Christopher Luxon and Chris Hipkins remained at odds, but their respective trade champions Todd McClay and Damien O'Connor set aside political infighting to mark the milestone at The Cloud on Auckland's Queen's Wharf. Both politicians acknowledged each other's efforts, with McClay and top trade negotiator Vangelis Vitalis pushing the deal through against India Commerce Minister Piyush Goyal's team, while O'Connor worked to secure Labour party support for a bipartisan approach.

Trade Terms And Tariffs

The agreement immediately eliminates tariffs on nearly 57% of exports sent to India, a figure set to grow to 82% over time, with 95% of current exports eventually seeing tariff removals or reductions.

Global Outlook

International keynote speaker Samir Saran addressed Westpac's Strategic Outlook Forum, warning business leaders that the global order is shifting amid rising conflict, low trust, and a contest for technological supremacy. Saran urged the nation to move past the old view of geographic isolation and instead leverage its position between the Indian and Pacific Oceans to build deeper economic ties.

Context

Bipartisan trade agreements help assure commercial markets that economic policies will remain stable even as elected governments change over time. India represents one of the world's major growth economies, making tariff reductions significant for nations looking to diversify their export destinations.