First Reading Completed in New Zealand Parliament
The ratification process for the India-New Zealand Free Trade Agreement (FTA) has officially commenced in New Zealand, with the first parliamentary reading already completed, the Ministry of External Affairs (MEA) confirmed on Saturday. However, no fixed timeline has been set for the agreement's implementation.
During a special media briefing in Auckland, held alongside Prime Minister Narendra Modi's official visit to New Zealand, MEA Secretary (East) Rudrendra Tandon provided details on the progress. He stated that New Zealand's parliamentary system requires three readings before final ratification, and the first has been accomplished.
Bipartisan Support Assured by New Zealand
New Zealand has assured India that the FTA enjoys bipartisan political support, which is expected to facilitate a swift ratification process. Tandon noted, "Prime Minister Luxon also told our Prime Minister that there is bipartisan support for this FTA. That's why he wants the ratification process to be done as soon as possible."
Responding to queries on a specific timeline, Tandon said, "There is no commitment of a set date, but the process of ratification has begun. We were told that there are three readings in Parliament, and one has already been completed. There is hope that these readings will proceed fast and the process will be completed sooner rather than later."
Investment Facilitation of USD 20 Billion
Regarding New Zealand's announcement to facilitate up to USD 20 billion in investment, Tandon clarified that the emphasis is on fostering a long-term economic partnership rather than imposing binding obligations. He explained, "It is that there will be facilitation of this, but the real point is that there is a great opportunity opening up in India. We have a large market, and we are undertaking significant structural reforms."
Quoting Prime Minister Modi's message to the business community, Tandon said, "This is not an invitation just to invest; it is an invitation for a long-term partnership with India." He further clarified that there are no specific penalties tied to the investment facilitation target.
Landmark FTA Signed in April
The India-New Zealand Free Trade Agreement (IN-NZ FTA) was officially signed on April 27. The agreement is expected to boost bilateral trade and economic cooperation between the two nations. Tandon expressed confidence that the ratification process would proceed smoothly, citing broad political support in New Zealand.
