Govt touts rising India trade – PM condemns anti-immigrant rhetoric

Todd McClay (left) and Christopher Luxon (right) speaking on the Government's trade agenda in Auckland.

Trade Minister Todd McClay says apple exports to India have soared 63% and tourism is hitting new highs before the Government's free trade deal even takes effect, as National puts it at the heart of a re-election pitch.

The trade drumbeat comes ahead of Indian Prime Minister Narendra Modi's arrival in Auckland on Friday – the first official visit by an Indian leader in 40 years.

McClay and Prime Minister Christopher Luxon launched National's election trade policy yesterday, promising negotiations with seven new markets within five years in pursuit of what the party calls New Zealand's "next billion customers".

Ahead of Modi's arrival, India's agreement with Aotearoa has already been signed, though it was still before Parliament, with entry into force expected later this year.

But McClay said exporters were already benefiting from a "halo effect".

"Export volumes are up because businesses and customers can see the quality of what New Zealand has to offer.," he said.

National says the markets offer “huge, untapped opportunities”.

"We’ve seen this pattern with other trade deals. Exports start growing as soon as people spot the opportunity, and the India free trade agreement is no different.

"The benefits will only grow once the agreement is up and running.”

The Trade Minister's office touted apple export figures this afternoon.

"Since negotiations began, volumes have jumped 63% on the 2024 season, from 27,000 tonnes to 45,000 tonnes so far this year, with the season still going.

"In just two years, India has climbed from our seventh-largest apple market to our fourth.

The minister said: “Once the free trade agreement takes effect, apple tariffs halve to 25% from day one on an initial quota of 32,500 tonnes, rising to 45,000 tonnes by year six. That’s a real financial boost for growers."

The deal also delivered tariff-free access to kiwifruit growers within a new quota starting at 6250 tonnes and rising to 15,000 tonnes, with tariffs halved outside the quota from the start. The industry expected around $125 million in tariff savings over five years.

Peters won't be meeting Modi

Luxon, who was hosted by Modi in India last year, said this week's trip was a leader-level visit and that Foreign Minister Winston Peters – who is on business in Singapore and Japan – would not be attending.

The Prime Minister stated the absence was "quite normal".

1News political editor Maiki Sherman reports from New Delhi, where Indo-Pacific security as well as supposed "anti-India activities" in NZ were discussed.

"I don't go travelling with the Foreign Minister and do visits to other leaders when I'm overseas," Luxon said, adding that his trade, economic growth and ethnic communities ministers would be with him for the high-level visit.

Peters' absence comes amid tension between the coalition partners over the free trade agreement with India — which the New Zealand First leader and his party oppose — and immigration, which he claims the deal will enable too much of.

Asked to confirm if he would retain him as foreign minister if National was re-elected in a coalition with New Zealand First, Luxon refused, saying it was "completely hypothetical".

Pushed on whether Peters' comments about Indian immigration were appropriate, Luxon said he "rejected many of the comments that I've heard from some of our politicians and also some of the voices in our community".

"It's unfair of politicians to go out there and whip up anti-immigrant sentiment and denigrate our immigrant community here in New Zealand.

"They have left their countries, whether they've come from India or anywhere else in the world, left their culture, their friends, their family, and they come here.

New Zealand First deputy leader Shane Jones says parliamentary colleagues have suggested he tones down his public comments but he maintains he gets "cut-through" by using hyperbole.

"They take two, three jobs, get a deposit for a house or a business. They send their kids to school, and they get them educated, and they don't go on welfare. And they're a great example of people of ambition and inspiration. They shouldn't be denigrated or vilified or whipped up while we get some politicians playing immigration cosplay."

Luxon added that the situation in New Zealand was different from that stirred up overseas, naming figures such as France's Marine Le Pen and the UK's Nigel Farage.

"That is not the situation in New Zealand, so let's get it grounded in some facts and some reality about it, and let's not give voice to those views," he said.

'Timely ratification matters' – McClay

Around 8000 Indian visitors arrived in April, "well up on the same month in previous years", McClay said, adding that Air New Zealand confirmed earlier today that it was working on joint venture plans with Air India for the first direct flights between the two countries.

McClay also said New Zealand would automatically capture improved terms for wine and services that India recently granted the European Union, provided the New Zealand-India agreement enters into force first.

"This is exactly why timely ratification matters. Getting our agreement in force ahead of the EU’s means New Zealand exporters capture those improved terms from day one.

“This momentum is down to the hard work of New Zealand exporters who got in early, built relationships and positioned themselves to make the most of the FTA when it kicks in. I’m confident we’ll see plenty more success stories in the months ahead," he said.