Prime Minister Christopher Luxon visits Hawke’s Bay, says he’s working to get apple exports into India

Prime Minister Christopher Luxon speaks to worker Dimitrios Milward at Rockit Global's Hastings facility. Photo / Gary Hamilton-Irvine

• Apple exports to India could significantly benefit Hawke’s Bay, but are hindered by a 45% tariff.
• Prime Minister Christopher Luxon is working to reduce the tariff and has initiated free-trade negotiations.
• Luxon emphasised the potential of India as a trade partner due to its growing affluence.

Apple exports into India “would be huge” for the horticulture industry in Hawke’s Bay, but the way is largely blocked by existing high tariffs.

Prime Minister Christopher Luxon says he’s working to “open up” that avenue.

Luxon visited Hawke’s Bay on Thursday on a whistle-stop tour which included a pop-in to apple company Rockit Global in Hastings.

He also visited Tumu Group and spoke at a business leaders’ lunch in Napier, before heading to Gisborne.

Hawke’s Bay grows about two-thirds of New Zealand’s apples, most of which are exported to countries across the globe.

However, an industry leader says there is currently a 45% tariff on apple exports into India, the world’s most populous country.

India has overtaken China with a population of about 1.5 billion.

Prime Minister Christopher Luxon speaking to business leaders at a lunch event in Napier on Thursday. Photo / Gary Hamilton-Irvine

Rockit Global chair John Loughlin said the tariff was a “show stopper” and it “would be huge” to open trade to that nation.

“India is a market with a large population base and rapidly growing affluence,” he said.

“They have quite significant domestic production [of apples], but we can certainly provide off-season supply if we weren’t restricted by tariffs.

“At the moment, 45% tariffs is a show stopper, but there is huge potential there.”

He spoke to Luxon about the trade barrier.

Prime Minister Christopher Luxon speaking to Rockit Global employee Josh Bowie. Photo / Gary Hamilton-Irvine

Luxon visited India this year and met with Indian Prime Minister Narendra Modi to strengthen that relationship.

Free-trade agreement negotiations have since started between the two countries.

Luxon previously said he planned to strike a trade deal with India in his first term.

During his visit, Luxon said New Zealand was growing its trade partners and exports, and “we are in the middle of those conversations” with India.

“We are trying to open up India as well,” he said.

“We want New Zealand apples to be sold into India without a disadvantage to Australian apples, for example.”

He said the success of businesses like Rockit relied on getting into markets around the world.

“Many of these other countries – whether it’s India or Southeast Asian countries – they are lifting their standard of living and lifting people out of poverty and into the middle classes.

“When you get to the middle class, all of a sudden you have money, you have a house, you have income, and you have better quality food and beverages.

“That is where New Zealand comes in because while we feed 40 million people out of New Zealand with our products, there is just huge opportunity.”

At a lunch event in Napier, Luxon also spoke to business leaders about the potential India has as a trade partner with its growing affluence.

He said the visit to Hawke’s Bay was largely about visiting local businesses and hearing from business leaders, as well as sharing what the Government was trying to do to lift the economy.

“And I have huge admiration for what has happened here and the resilience of the people and what they have achieved – so it’s great to be here.”

He spoke to business leaders on a range of topics from the need to improve school attendance in Hawke’s Bay, to the need to make regulations simpler – such as through Resource Management Act reform – to make it easier to progress infrastructure projects.

Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.