WELLINGTON, April 23 (Reuters) - New Zealand's opposition Labour Party said on Thursday it would support a free trade deal with India, paving the way for the agreement to clear parliament after one of the coalition partners in the government opposed it.
"This is not the deal Labour would have negotiated, but we value our relationship with India and the positive contributions of our Indian communities," opposition leader Chris Hipkins said.
New Zealand and India concluded a free trade deal in December
that will eliminate or reduce tariffs on 95% of New Zealand's exports to India, with more than half of the products to be duty free on day one of the pact, while all Indian goods would have duty-free access to New Zealand.
New Zealand also agreed to invest $20 billion in the Asian country in the next 15 years. The agreement is due to be signed on Monday in Delhi.
National, the largest party in government, along with coalition partner ACT both support the agreement but the third coalition partner, New Zealand First, does not. This means Labour's support is necessary for the deal to be ratified in parliament. Trade agreements in New Zealand have historically been bipartisan.
New Zealand exporters and businesses last week called for cross-party support for the agreement.
(Reporting by Lucy Craymer in Wellington and Renju Jose in Sydney; Editing by Chris Reese and Nia Williams)
