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New Zealand is ready for some tough negotiations with India as it seeks a free-trade agreement that includes dairy, Prime Minister Christopher Luxon said.
The two nations agreed to start working toward an agreement during Luxon’s official visit this week. He met Indian Prime Minister Narendra Modi for bilateral talks Monday in New Delhi.
New Zealand efforts to secure better access to India’s huge markets have foundered in the past, in particular because India wants to shield its dairy industry from imports. Luxon said he understands those sensitivities but they aren’t a reason not to push for dairy’s inclusion in a free-trade deal.
“I just don’t want us to give up on dairy,” he told Radio New Zealand Tuesday in Wellington. “We are going to try and find a way to make dairy work. Having done a lot of business in India in my past life, I can tell you it’s pretty brutal negotiations but we are up for that.”
Luxon said New Zealand shouldn’t have an attitude of not starting a conversation because there are obstacles to overcome.
“There’s very good chemistry between our respective trade ministers and prime ministers,” he said. “We are very determined and both Prime Minister Modi and I said to our trade teams today that we expect them to work hard and fast together and work their way through the issues and sensitivities that are there.”
In the lead up to his election in late 2023, Luxon made the bold commitment to secure a free-trade deal with India in his first term, which will end in late 2026. He said that remains the ambition.
“We’ve built a relationship that was non-existent at the beginning,” he said. “We are here now on a state visit, which people thought would be very difficult. We are here having kicked off FTA negotiations and we’re working really hard to make sure we get it done.”
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Later on Tuesday, India’s commerce minister said a deal between the two nations could boost trade by 10 times over a decade. “We are very aspirational and working together in spirit of cooperation,” said Piyush Goyal at an event in New Delhi, where Luxon was also present.
