World / Politics

Christopher Luxon meets Narendra Modi, but little sign of free trade deal

15:13 pm on 11 October 2024

Prime Minister Christopher Luxon has met with India's leader Narendra Modi. Photo: Pool

Prime Minister Christopher Luxon has emerged from his coveted meeting with India's leader Narendra Modi, wielding an official invite to New Delhi but little indication of progress toward a promised free trade deal.

The two leaders met in the very early hours of Friday (NZT) while in Laos for the East Asia Summit.

In opening remarks in Hindi, Modi offered Luxon "a very warm welcome", noting it was their first in-person meeting having previously spoken over the phone in July.

"I'm very happy to have this opportunity of seeing you today [to] discuss some important issues," a spokesperson translated.

Media were ushered out of the room before the end of Modi's remarks or Luxon's response.

Speaking before the sit-down, Luxon told media he was determined to deepen relations with India with the goal of securing a free trade deal, citing India's booming economy and population.

"I want the relationship in place, which is what we've been working hard at over the last 10 months," he said.

"Once we have a foundation of a relationship, then we can start to progress the more transactional conversations around trade, and also around security."

National campaigned on securing an FTA with India in its first term, a pledge experts described as highly ambitious given major differences between the countries over dairy.

Luxon told RNZ his commitment remained intact: "Yeah, that's what we want to work towards, yes, absolutely."

He acknowledged that to strike a deal this term, formal negotiations would need to open in 2025 at the latest.

Since coming to office, Trade Minister Todd McClay has visited India three times and met with India's trade minister Shri Piyush Goyal six times. Foreign Affairs Minister Winston Peters has also visited India, and New Zealand has hosted president Droupadi Murmu.

Luxon said he intended to visit New Delhi early next year, as his promise to visit in the first year of his government was no longer feasible due to the busy summit schedule.

"It was just very difficult to practically make it happen between now and Christmas. Obviously New Zealand is then into summer holiday."

Labour Party foreign affairs spokesperson David Parker earlier told RNZ he supported efforts to improve the relationship with India.

But he said it was time Luxon admitted he had sold New Zealanders a pipe dream.

"They promised that they would land a free trade agreement, but of course, they said everything they thought they needed to say to get elected, even things that were not credible."

Modi was just one of a whirlwind of world leaders Luxon has sat down with during his quickfire trip to Laos. Others included the prime ministers of Cambodia and Vietnam, as well his Australian and Canadian counterparts.

Luxon has further meetings scheduled with the Thai prime minister and Philippines president on Friday.

Another meeting with Laos' prime minister did not go ahead after she was delayed. Luxon could not wait as he had a speech to deliver to the Asean Business and Investment Summit.

Luxon also mingled with power players at a gala dinner overnight, where the US Secretary of State Antony Blinken and China's premier Li Qiang were in attendance.

Members will reconvene on Friday afternoon for the East Asia Summit proper.