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Labor Party’s support for New Zealand-India FTA a game changer: Shashi Tharoor

by Pratik Tripathi
January 20, 2026
in Technology
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Labor Party's support for New Zealand-India FTA a game changer: Shashi Tharoor
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New Delhi, January 20 (IANS). Congress MP Shashi Tharoor on Tuesday praised the news that the New Zealand Labor Party has officially announced its support for the legislation required for the New Zealand-India Free Trade Agreement (FTA).

India and New Zealand completed a comprehensive and long-awaited FTA last month, marking a major economic and strategic milestone. Negotiations formally began on March 16, 2025.

Tharoor said in a post on social media platform

Tharoor posted, “The Labor Party says this is a continuation of their long-standing efforts to deepen ties with India and that it would be irresponsible to block a deal with the world’s fastest growing major economy. While they are concerned about the ‘dairy deficit’ (keeping key dairy products out of the FTA), the Labor Party argued that some progress is better than no progress at all and that the deal would be a boost for other sectors like education, tech and wine. Provides an important basis.”

The ruling National Party made some ‘political concessions’ to gain Labor Party votes. The agreement includes a one-year review system. The Congress MP further said, “This allows for the formal exploration of ‘further reforms’, particularly with respect to dairy and environmental standards.”

The enabling legislation will now go through the parliamentary committee process and is expected to be passed with a “super-majority” (National + ACT + Labour) in the first half of 2026.

He wrote, “We can start trade with New Zealand by the end of the year! New Zealand may be a small economy, but completing an FTA with it would be a symbolic game-changer and would signal that India is enhancing its trade channels – and expanding its options.”

The FTA eliminates 100 percent tariffs on Indian exports, as well as a commitment to invest $20 billion over 15 years to strengthen long-term economic and strategic cooperation.

–IANS

SCH

Tags: BusinessIANSNationalScience Technology

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