Photo: Mark Papalii
Business groups have welcomed the announcement of a new Free Trade Agreement with India, but a partner in the coalition government will not support it, saying it is a "bad deal".
The government announced this evening that it had reached conclusion of free trade negotiations with India
It said the deal will eliminate or reduce tariffs on 95 percent of exports, with wins for kiwifruit, apples, meat, wool, coal, forestry, and more.
But only limited gains were secured for dairy, with duty-free access for re-exports, bulk infant formula, and a 50 percent tariff cut for high-value milk albumins under a quota.
Export NZ, the NZ Forest Owners Association, the Meat Industry Association, Beef + Lamb NZ, Horticulture NZ, NZ Timber Industry Federation, Wools of NZ have all expressed support for the deal, but NZ First is withholding political support - which means it is now in the hands of the opposition whether it passes or not.
'A bad deal for New Zealand'
In a statement released just as the deal was announced on Monday, NZ First leader Winston Peters said it was a bad deal for the country.
"It gives too much away, especially on immigration, and does not get enough in return for New Zealanders, including on dairy."
New Zealand First exercised the agree to disagree provision of its coalition arrangements when Cabinet approval
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