Christopher Luxon has been invited to New Delhi by Narendra Modi, but progress towards the trade deal New Zealand desires seems to be minimal.
New Zealand Prime Minister Christopher Luxon finally met with his Indian counterpart, Narendra Modi, at the ASEAN summit in Laos.
Despite receiving an invitation to New Delhi, it appears that the Pacific nation is no closer to achieving the free trade agreement it has been seeking.
During the meeting, Modi delivered some opening remarks to the media before they were asked to leave, preventing Luxon from responding.
Speaking in Hindi, Modi warmly welcomed Luxon and expressed his satisfaction at their first in-person meeting, following a previous phone conversation in July.
Luxon’s National Party had campaigned to secure an FTA with India in its first term, despite significant disagreements between the two countries regarding dairy products.
India is now the world’s fifth-largest economy and could potentially become the second-largest by 2050, following China. However, New Zealand only contributes 0.1 percent of India’s imports and ranks 75th on its list of trade partners.
The country has historically protected its dairy industry, as evidenced by its withdrawal from the Regional Comprehensive Economic Partnership (RCEP) and limited access to dairy products in its trade agreement with Australia.
Luxon Remains Optimistic
Prior to the meeting, Luxon expressed his commitment to strengthening relations with India.
While acknowledging potential challenges and disagreements, Luxon emphasized the importance of establishing a solid foundation for the relationship before delving into trade and security discussions.
Although he stood by his pledge to secure an FTA, Luxon recognized that formal negotiations would likely need to begin by 2025.
Labour’s foreign affairs spokesperson, David Parker, cast doubt on the promise, suggesting that the pre-election commitments may not be feasible.
Following the meeting, Modi praised the interaction on X (formerly Twitter), describing it as “excellent.”
Modi highlighted the value of the friendship between India and New Zealand, based on shared principles of democracy, freedom, and the rule of law. Discussions covered economic cooperation, tourism, education, and innovation.
Additionally, Luxon interacted informally with Japan’s new leader, Shigeru Ishiba, congratulating him on his recent election as Prime Minister following a leadership election for Japan’s ruling Liberal Democratic Party.
Luxon expressed eagerness to continue building the relationship between New Zealand and Japan, acknowledging Ishiba’s busy schedule during the leadership transition.
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