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Game Changer: Shashi Tharoor Hails New Zealand's Oppn Labour Party Batting For India FTA
Game Changer: Shashi Tharoor Hails New Zealand's Oppn Labour Party Batting For India FTA
In a significant update for India's trade diplomacy, senior Congress leader and Member of Parliament Shashi Tharoor has highlighted a major breakthrough in the New Zealand-India Free Trade Agreement (FTA). Tharoor expressed surprise in a post on social media site X that the domestic media had largely overlooked a crucial political shift in Wellington. Following a caucus meeting on Tuesday, the New Zealand Labour Party officially announced its support for the enabling legislation of the FTA, effectively “rescuing" the deal for Prime Minister Christopher Luxon's government.
The development is particularly noteworthy due to the internal friction within New Zealand's ruling coalition. Prime Minister Luxon's partner, the New Zealand First party, remains staunchly opposed to the deal and has invoked a rare “agree to disagree" clause. This internal rift threatened to stall the agreement, but the opposition Labour Party's decision to back the deal has provided the necessary parliamentary numbers. Labour argued that blocking a deal with India—the world's fastest-growing major economy—would be “irresponsible", framing their support as a continuation of their own long-standing efforts to deepen bilateral ties.
The support from Labour was not unconditional. To secure the votes, the ruling National Party offered specific “political concessions", including a one-year review mechanism. This clause allows New Zealand to formally pursue further improvements in sectors like dairy and environmental standards, which remain sensitive points for Kiwi farmers. While core dairy products are currently excluded from the deal—a point of concern for Labour—the party maintained that progress in education, technology, and wine exports represents a vital foothold in the Indian market. For India, the scrutiny of migration provisions remains a key area of interest, promising easier movement for professionals and students.
With a “super-majority" now formed by the National, ACT, and Labour parties, the enabling legislation is expected to clear the parliamentary committee process in the first half of 2026. Tharoor noted that while New Zealand is a relatively small economy, the symbolic value of concluding this FTA is immense. It signals India's growing ability to widen its trade channels and diversify its global options amid shifting geopolitical alliances. Ever the diplomat-cricketer, Tharoor concluded his update by pivoting from trade to sport, urging fans to turn their attention to the first T20 International between India and New Zealand.
Source: News18
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