Coalition Govt split over Indian FTA
The Coalition Government will need the support of at least one opposition party to ratify the free trade deal with India.
Speaking to Rural News at a Meat Industry Association (MIA) function in Wellington last week he says he's no longer using the word 'free' and instead is just talking about 'trade agreements' - a subtle but very significant nuance.
He says the notion of an FTA is a "fairly old" concept that was relevant in the heady days of trade liberalisation, but is not relevant in the new global context where there is greater emphasis on protectionism in trade.
McClay says the new order is demanding that NZ take a more aggressive, politically-led approach to opening opportunities for Kiwi exporters. He says it's similar in some ways to the 1970s and '80s when Britain joined the then EEC and NZ had to quickly find new markets for its primary produce. In those days there was a flurry of politicians heading to the UK, Europe and other parts of world to get new deals.
"The situation now is that we have got to put the effort in, show up and convince people about the benefits of trade and doing deals with NZ.
"If we sit at home leaving it to officials and hoping it will happen, inevitably we will get passed.
"So, you have seen the Prime Minister and Deputy Prime Minister out on the world stage a lot looking for opportunities and opening doors for our negotiators, so that our exporters to be able to do more business," he says.
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A major strategic target or the Government is India, says McClay. He says in the past nine months he's had five meetings with his counterpart in India and they now have a very constructive relationship. He says there are many things that NZ can do with India.
"We are now talking [about] how we can boost trade with India before we start talking about the architecture of what any trade deal may look like. But whatever we do, the primary food and fibre sector has to be an important part of that and the deal has to be meaningful, and India knows that."
