Todd McClay insists India FTA 'very clear' after one clause raised questions

The Trade Minister maintains India is on the same page as New Zealand in regards to the Free Trade Agreement, despite Narendra Modi referencing a particular clause as a "commitment" to invest.

Todd McClay says the agreement itself is "very, very clear" and the texts in each country are "identical."

The clause requires the government to "promote" investment in India, but the Indian Prime Minister called it a "commitment" to invest billions of dollars in India.

The Prime Minister hosted his Indian counterpart in Auckland on Saturday, marking the first time in 40 years an Indian prime minister has come to New Zealand.

Speaking to Morning Report on Monday, Todd McClay said the clause was about promoting investment.

He also said the texts were identical in each country given lawyers from both sides had worked through it, "there isn't a difference in that text."

He acknowledged people might talk about things "a little differently", but it "doesn't negate from what the legal text says."

McClay was asked multiple times about the different wording, and acknowledged Modi spoke about doubling exports to $7 billion in both directions, but maintained the agreement itself was "very, very clear".

"It is a commitment to promote.

"We have committed to promote investment."

McClay said India probably isn't spending as much time talking about the details of the agreement as New Zealand, given it was a country of 1.4 billion people.

"We have spent four months now going through this in detail, including the parliamentary committee.

"The commitment is very, very clear, legally in there to promote investment. I think it is time for us now to get on and make the most of this agreement."

He said New Zealand "always honours" its commitments in free trade agreements, and was already working through how to help promote the investment and "help Kiwis get up into that market."

He gave the example of a New Zealand fintech company who had just been given a contract with India's third largest bank to provide financial service support to them.

McClay was also asked about New Zealand First leader Winston Peters' criticism of the free trade agreement, and said, to his knowledge, no one from the Indian delegation raised those comments during the visit.

"I think there is an understanding that it's election year at the moment, and it's probably going to be a little bit noisy," McClay said.

Earlier in July, Peters accused National of covertly making changes that would discriminate against Indians migrating to New Zealand.

He read aloud from a briefing he claimed showed officials raising concern about changes Immigration Minister Erica Stanford had "approved" that would be "more restrictive in a way which targets India and India alone", and could impact relations with the country and New Zealand's reputation.

McClay quickly rebuffed it at the time.

Speaking on Monday, McClay again said Peters was incorrect.

Asked specifically if Peters was telling the truth regarding covert discrimination against Indian migrants, McClay said every trade agreement was different.

As an example, he said, 1,670 workers from India can come to New Zealand each year as skilled migrants, "other other countries are not able to do that."

"So no, that is not correct."

The agreement "does not discriminate" he said.

Foreign Minister Winston Peters was also asked about India's extension of its sphere of connection and influence, including the FTA in New Zealand, and told RNZ India was "certainly" an emerging power.

"In every sense, they've got their diaspora worldwide, and they've got a huge push generated from political motivation inside India on that score, which we shall not underestimate."

Peters said it had "political ramifications" in India, and it was important for New Zealand as a country to ensure it was "alongside those developments, but with qualifications that they be in our interests."