India-NZ trade deal? Todd McClay, Piyush Goyal hail progress but dairy details remain elusive

NZ Trade Minister Todd McClay and his Indian counterpart Piyush Goyal earlier this year in India. Photo / Supplied

Are we there yet?

Speculation was mounting about free trade deals before New Zealand and India’s trade ministers held a press conference this evening.

While both sides hailed progress, it’s still not clear how the dairy industry will fit into the equation.

On his first official visit to New Zealand, Indian Minister of Commerce and Industry Piyush Goyal praised New Zealand’s Trade and Investment Minister Todd McClay.

“Thank you so much, my good friend, my brother,” he said.

“It’s truly remarkable that over the last year and a half we’ve become such good friends.”

Goyal said the bilateral relationship had moved on to the “next level”.

McClay yesterday said the bilateral relationship had received unprecedented engagement over the past two years.

Today he told media: “We are now having our fifth formal round of negotiations.

“And it’s fair to say we are making very fast and very good progress.”

He said both ministers were committed to “delivering a high-quality agreement that’s balanced and good for both India and New Zealand”.

But dairy was expected to be a sticking point, with the powerful Indian dairy lobby not expected to embrace a free trade deal.

Both ministers were asked repeatedly about dairy but declined to say if negotiations around that sector were problematic.

Goyal said both sides had agreed some time ago to focus on areas of likely achievement rather than “sensitive” areas.

“We are two very different-sized economies.”

Todd McClay (left) and Piyush Goyal in Auckland today. Photo / John Weekes

He said India was the world’s fastest-growing major economy, growing every year by more than New Zealand’s entire GDP.

McClay said it was hard to quantify how many more rounds of negotiations would be needed but he did not believe any records for lengthy talks would be broken.

Earlier today, Prime Minister Christopher Luxon skipped Question Time in Parliament and instead flew to Auckland to see Goyal.

McClay said he and Goyal would be meeting the PM this evening.

In a statement overnight, the Indian Government said it anticipated an “early conclusion” of the bilateral free trade agreement.

BusinessDesk earlier today reported Goyal had brought 42 business delegates with him.

Those delegates were from a range of industries, including technology, textiles and agriculture.

Back in 2023, the India-New Zealand Business Council suggested much more work was needed to secure a strong relationship with the world’s most populous country.

“India is an economic universe of its own. India is not China,” council chairman and former Fonterra director Earl Rattray told the Herald at that time.

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