Todd McClay insists India FTA 'very clear' after one clause raised questions
New Zealand Trade Minister Todd McClay is defending a free trade agreement with India after Prime Minister Narendra Modi described a clause as a financial commitment. McClay insists the legal text is identical in both countries and only requires the government to promote investment rather than provide direct funding.
Why it matters
Clarifying the specific legal obligations of international trade agreements is essential for maintaining diplomatic relations and economic transparency between nations.
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."
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