NZ PM Christopher Luxon on India Ties, Trade Deal and China's Rise in the Indo-Pacific

New Zealand Prime Minister Christopher Luxon gave an interview timed to Indian Prime Minister Narendra Modi's visit to his country. He described a relationship between the two nations that has existed for over a century but has lacked a strong shared agenda until now. Luxon said he wants to change that by deepening ties across trade, defence and people-to-people connections.

A major highlight is the Free Trade Agreement between the two countries, which was concluded quickly after talks began during Modi's visit to India last year. Luxon credited the speed of the negotiations to high trust between the two governments and strong personal relationships among the leaders and trade ministers involved. He described the two economies as complementary, with India strong in technology and New Zealand strong in agriculture and renewable energy, suggesting both sides have much to gain and share.

Some sensitive areas remain outside the deal, such as full access for New Zealand's dairy products into India, which Luxon said he understands given how important dairy is to India's economy. However, he expects growth in areas like apples, lamb and services trade, along with more investment flowing between the two countries.

Luxon addressed concerns that a coalition partner in his government opposes the trade deal. He explained that New Zealand's Parliament includes several parties, but the two largest ones, on opposite ends of the political spectrum, both support the agreement. He noted that the party in question has historically opposed every trade deal New Zealand has signed, so this is not unexpected, and he expressed confidence the deal will pass smoothly since trade policy in New Zealand generally has broad political support.

On the subject of China's growing assertiveness in the Indo-Pacific region, Luxon said the world is shifting from a rules-based global order to one driven more by raw power, and from a system with many countries cooperating to one where a few powerful blocs compete. He pointed to America's more inward-looking stance, China's ambitions in the region, and Russia's invasion of Ukraine as signs of this shift. He argued that countries like New Zealand and India, which have benefited from a fair, rules-based system since World War II, need to work together to defend and reform that system, especially since developing nations were largely excluded when the original rules were created.

Luxon also spoke about defence cooperation, mentioning that New Zealand's navy has already worked alongside India's navy on joint missions, and he wants to expand this into more joint military exercises and exchanges.

Finally, Luxon reflected on the unpredictability introduced by US President Donald Trump's policies, particularly around tariffs. He said New Zealand, as a country that has kept trade barriers at zero since the late 1980s, disagrees with Trump's tariff-based approach, even though it maintains a strong overall relationship with the United States. He suggested that in today's uncertain world, countries must cooperate with like-minded partners while being clear about where they differ.