New Delhi: Conservative leader and former businessman Christopher Luxon, poised to be New Zealand’s next prime minister after his National Party emerged as the winner in Saturday’s election, has repeatedly talked about ‘prioritising’ his country’s trade relationship with India.
Luxon (53) has in the past expressed his intent to visit India within his first term and strike a free trade agreement (FTA) with New Delhi, despite negotiations hitting a wall in 2015.
On Monday, Prime Minister Narendra Modi offered congratulations to the new Prime Minister-elect. “Look forward to working together to further strengthen India-New Zealand ties,” he wrote in a post on X.
Heartiest congratulations to Prime Minister-elect @chrisluxonmp for his party's win in the General Elections.
Look forward to working together to further strengthen India-New Zealand ties.— Narendra Modi (@narendramodi) October 16, 2023
As for Luxon, he is now faced with the task of forming a coalition government with preferred partners ACT New Zealand and New Zealand First.
Luxon’s National Party emerged victorious in Saturday’s election after six years of a Liberal Party government, led mainly by former PM Jacinda Ardern. Her successor Chris Hipkins, who conceded defeat Sunday, was in office for just nine months prior to the election.
New Zealand holds general elections every three years. With over half a million ‘special votes’ — which account for approximately 20 percent of the total — yet to be counted, the final results of this year’s election will be announced on 3 November.
Visiting India in first term
Luxon, who held multiple senior roles during his 18-year stint with global consumer goods giant Unilever before taking on the role of chief executive of Air New Zealand in 2013, is arguably a newcomer to politics, having secured a seat in parliament only in the 2020 New Zealand general election.
He took over the leadership of the National Party in November 2021, after his rival for the post, Simon Bridges, was demoted in light of allegations of an inappropriate comment made five years prior at a party function. Bridges quit politics last March.
First day on the job for National’s brand new MPs today, and @NicolaWillisMP and I were delighted to meet them at Parliament. We will together go to work to get our country back on track. pic.twitter.com/p9HWt5GDeH
— Christopher Luxon (@chrisluxonmp) October 16, 2023
While on the campaign trail this year, Luxon and his National Party lambasted the previous Liberal Party government for not developing New Zealand’s ties with India to its fullest.
“Over the last six years, we’ve had a government that has not put a lot of effort into the Indian relationship at all,” Luxon was quoted as saying during a NZ-India Summit organised by the National Party at the Swaminarayan Complex, Auckland in April this year.
Speaking of how India is ‘predicted to become the third-largest economy by FY28’ and surpass China to become the world’s most populous country, Luxon had said that visiting the country would be a “priority” for him.
“It’s going to be a priority for me…expect to see me there (India) in my first year. Expect to see our foreign ministers and our trade ministers on the planes, 365 days a year, hustling, building business for New Zealand,” he added.
In his speech at the NZ-India Summit, Luxon also recalled making several visits to India when working at Unilever and interacting with executives from its subsidiary Hindustan Unilever.
“I love India, from the business of the streets and the passion for cricket, to the unbridled enthusiasm for commerce and trade, to the immense talent and potential that I have seen up close and first-hand in the Indian people,” he told the audience.
He also talked about the need to invest more in India, and expand the previous Liberal Party government’s ‘India–New Zealand 2025: Investing in the Relationship’ initiative.
“India is also wanting more investment, particularly in its technology and high-skills sectors. The range of ways our two countries could cooperate in our mutual interest is wide. For example, further development of opportunities for skilled workers, other employment linkages and tourism growth between New Zealand and India,” Luxon said at the summit in April.
Re-starting FTA talks
Over the last year, Luxon has also talked about the need to restart FTA negotiations with India, as the country seeks to lessen its dependence on China for trade.
He has also promised to strike an FTA with India within his first term.
According to data from the Indian commerce ministry, bilateral goods trade between India and New Zealand only reached pre-pandemic levels last fiscal. Goods trade stood at $1.01 billion in FY19, $900 million in FY20, $867 million in FY21, $862 million in FY22 and $1.02 in FY23.
New Zealand’s total bilateral trade with India (goods and services) is worth over $2 billion, compared to approximately $40 billion with China.
FTA talks between New Delhi and Auckland have been stalled for the last seven years reportedly due to lack of enthusiasm from New Delhi, specifically over opening up market access in sectors like dairy.
Though then New Zealand prime minister John Key actively sought to strike a trade deal with India in 2010, talks have been stalled since the last formal round of negotiations occurred in Delhi in February 2015.
Last October, New Zealand Foreign Minister Nanaia Mahuta had told reporters that an FTA between the two countries was “not a priority” at the time, whereas the digital economy and green business were areas that needed more attention. Speaking at the NZ-India Summit in April, Luxon had termed Mahuta’s remarks as “deeply disappointing”.
In an interview with 1News earlier this month, Luxon also noted how other countries like Australia have successfully struck trade deals with India.
“I watched the Australians negotiate a free early harvest free trade deal with India through the Covid period…we haven’t really been present at all,” he said.
He named India, Indonesia and other Asian countries as countries with whom New Zealand needs to bolster its trade. “We’ve got some challenges around free trade agreements per se, but we want to build confidence and operate in those markets for our businesses,” he told the news outlet.
During his visit to New Zealand last October — a first in 20 years by an Indian foreign minister — External Affairs Minister Dr S. Jaishankar had criticised the delay in renewal of visas of Indian students who had returned home during the Covid-19 pandemic.
This was echoed by National Party’s spokesperson for trade Todd McClay earlier this month. On 5 October, while speaking at the first-ever India Business Summit in Auckland, McClay criticised the “slow and often arbitrary” nature of the previous Liberal Party government’s decision making with respect to Indian visas. This, he said, had put a further strain on the bilateral relationship between the two countries.
(Edited by Amrtansh Arora)