CTU Submission on a Proposed New Zealand-India Free Trade Agreement

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Summary 

In relation to New Zealand's proposed free trade agreement with India, the CTU has concerns regarding a number of issues including labour rights in India particularly in relation to the existence and treatment of child workers and forced labour, the banning or constraint on union activities in India, the impact of tariff reductions on the New Zealand manufacturing sector, rules of origin, the impact on services (including education), protection of public services, investment issues, and Te Tiriti o Waitangi issues including the protection of traditional Maori intellectual and cultural property. We also support a general Treaty of Waitangi exception.

We note the statement in the report that New Zealand and India have "complementary" economies. Exports from New Zealand to India are expected to be dominated by agricultural commodities and coal; exports from India to New Zealand are expected to be dominated by industrial and more highly processed goods.

We have our expressed our high level of concern at proposals for further inroads into domestic regulatory flexibility. This goes to the heart of union concerns about the way in which rules around services trade could restrict New Zealand domestic policy space on important regulatory matters.

We note that India has considerably more stringent controls on foreign investment (direct, portfolio and financial) than New Zealand. It also offers investment incentives. We therefore see no necessity to compromise New Zealand's regime, which is liberal in international terms.

Our most immediate concerns in the area of IP rights are that strengthening of rights should not increase the cost and availability of medicines and with regard to IP and the Treaty of Waitangi. If negotiations extend beyond India's position are entered into we would like the opportunity to make further submissions.

Lastly, CTU has received from the International Trade Union Confederation (ITUC) a report on labour practices used in India, describing use of child and forced labour, labour rights abuses in relation to union officials, discrimination against Dalits and women, and workers employed in foreign owned companies in India's Special Economic Zones. A copy of this report is available here.