The Asean bloc was already significant for New Zealand traders. In the year to June 2024, exports were worth $9.21 billion or 9.4% of New Zealand’s overall export value over this period. The Government was seeking to upgrade our relationship to what was called a “Comprehensive Strategic Partnership”.
Luxon had also locked in a three-way meeting with his Australian and Canadian counterparts Anthony Albanese and Justin Trudeau, which was expected to focus heavily on global and regional security challenges.
The Canada-Australia-New Zealand bloc had issued a handful of formal statements over the past year regarding the violent aftermath of Hamas’ incursion into Israel and the retaliatory actions taken by Israel.
This week marked one year since Hamas’ murder of more than 1100 individuals in Israel, which reignited conflict in the region.
The trio of countries had previously taken a strong stance on Israel, expressing grave concerns in February about the nation’s plans for a ground offensive in the Gazan city of Rafah and telling Israel in July to listen to concerns in the international community about its actions. Those calls came as Israel mounted a barrage of strikes against Gaza, where Hamas is located.
Luxon’s meeting with Modi could help strengthen relations with the economic powerhouse.
While the Prime Minister promised in last year’s election campaign to get a Free Trade Agreement (FTA) with India this term, no formal negotiations had begun.
Foreign Affairs Minister Winston Peters and Trade Minister Todd McClay had visited India, however, indicating New Zealand’s interest.
Experts told the Herald an FTA shouldn’t be New Zealand’s sole focus. Business partnerships and getting direct air flights should also be prioritised, they said.
”We should actually look at what we call as a comprehensive economic partnership, which means we are looking at an investment-driven long-term trade agreement where we are contributing to certain sectors in India through tech partnerships, through business partnerships,” AUT economic lecturer Rahul Sen said.
”It’s giving us a platform for New Zealand businesses to actually set up shop in India and export from there.”
The East Asia Summit is an annual forum convened by Asean with a focus on strategic, political and economic issues.
”The EAS is an important opportunity to discuss strategic issues, which continue to be on an increasingly challenging trajectory across the Indo-Pacific,” Luxon said ahead of the trip.
“With so many counterparts in Vientiane, I look forward to meeting formally and informally with leaders from across the region to advance New Zealand’s interests.”
Jamie Ensor is a political reporter in the NZ Herald Press Gallery team based at Parliament. He was previously a TV reporter and digital producer in the Newshub Press Gallery office.
