India FTA timed right for NZ, says trade analyst
Leading trade analyst Stephen Jacobi has rubbished claims that New Zealand could have got a better free trade deal with India if it had prolonged the negotiations.
He says the country's politicians move forward on trade and international relationships in "a harmonious and consistent way".
He was speaking at the inaugural EU/NZ Business Summit in Auckland recently. The meeting coincided with the visit of EU Trade Commissioner Maroš Šefčovič.
A free trade deal between the EU and New Zealand came into force in May last year. O'Connor, who served as Trade and Export Growth Minister in the previous Labour government, was involved in negotiations and signed the FTA on behalf of NZ in July 2023.
O'Connor says he wants to assure Europe that trade is one area of NZ politics "where there's pretty much unity".
"We may discuss around the edges some of the things that we try harder on, but across all governments for many years, New Zealand, because we are a nation that's highly dependent upon trade and relationship with others, we've got to move forward in a harmonious and consistent way.
"So, we're not going to do U-turns in terms of trade policy."
O'Connor recalled that when the prospect of the EU trade agreement was put forward, people were enthusiastic and positive but thought that NZ was perhaps a little ambitious.
Progress ultimately depended upon trust at every level.
"And I'd have to say as the EU would understand as a bloc of 27 member countries, those relationships are built on trust, and the unity that has been achieved there over so many years is because of trust.
"My job was to build trust, to say that we're a nation that didn't want to swamp the EU market with our products, the fact that we could only feed 40 million people in total.
"It was to build trust that we shared values and that the partnership that we would build would be beneficial for both of us. We couldn't offer volume, we can offer value."
O'Connor says the EU FTA is way beyond the expectations of conservative officials.
"Some of the papers that we got really undershot the potential benefits.
"But, once you open the door, once you know that there's some certainty, then you get on and look for opportunities.
"And that is indeed what has happened with this agreement. On behalf of our exporters, I simply negotiated the opportunity and we're grateful. It did come down to literally walking between rooms to negotiate the last thousand tons of beef."
O'Connor acknowledged that not all primary sectors were happy with the final deal. Dairy and meat exporters complained that the deal provided only modest improvements in access into the EU.
But O'Connor says that that's the way it works.
"In the end, you must make a call. There are always people who are perhaps disappointed, you know it's like the teacher school card - 'could have done, could have tried harder'."
EU Trade Growing
Two-way goods and services trade between New Zealand and the EU was worth $21.58 billion in the year to June 2025, with NZ exports having increased by $2 billion since the free trade agreement (FTA) entered into force last year.
Trade Minister Todd McClay says the EU is one of New Zealand's most important and trusted partners.
"There is potential to deepen our relationship across trade, investment, technology and innovation. We have agreed to reduce non-tariff barriers between New Zealand and the 27 member countries of the European Union," McClay says.
He says EU Trade Commissioner Maroš Šefčovič's visit was a valuable opportunity to showcase world-class Kiwi exporters and highlight investment potential in NZ's fast-growing tech companies.
"We're seeing strong growth in exports to the EU across sectors - from meat, dairy, honey and forestry to high-tech goods and services, pushing us towards the goal of doubling the value of exports in 10 years," McClay says.
Šefčovič and McClay also discussed the EU's Deforestation Regulation, which is due to be implemented on 30 December 2025 with exemptions during the first six months.
"I am pleased the Commissioner has recognised that New Zealand is honouring its commitments under the FTA around environmental and climate change and that we contribute to afforestation.
"We have agreed to work together to reduce costs and compliance on Kiwi and European exporters and ensure they continue to have fair access under our trade agreement."
