PM-elect Ardern focuses on final touches in New Zealand coalition deal

New Zealand Prime Minister-elect Jacinda Ardern said she has offered the role of deputy prime minister to New Zealand First party leader Winston Peters. (Reuters)
Updated 20 October 2017

PM-elect Ardern focuses on final touches in New Zealand coalition deal

WELLINGTON: New Zealand Prime Minister-elect Jacinda Ardern said she would spend Friday ironing out issues and ministerial posts with coalition partner New Zealand First, a day after becoming the Pacific nation’s youngest leader in recent times.
The previous night’s highly anticipated announcement by New Zealand First leader Winston Peters that he would support 37-year-old Ardern’s Labour Party had ended a decade of center-right National rule and spelt big changes for the country’s economy.
The New Zealand dollar — the world’s 11th-most traded currency — fell to five-month lows as investors grappled with heightened uncertainty and a more protectionist agenda.
“When you are a hands off government, when you simply allow markets to decide the fate of your people, then that does not serve a country or it’s people well,” Ardern told reporters in Wellington.
“You will see a proactive government by Labour.”
Labour has released the names of the people who would be in the cabinet, saying it would announce their portfolios next week.
The include Grant Robertson, Labour’s spokesman for finance, and David Parker, spokesman for trade.
Ardern said on Thursday she had offered the role of deputy prime minister to Peters, who on Thursday gave his backing to Labour after inconclusive Sept.23 elections, and he was considering it.
On Thursday evening, Labour said it would also stick to its promises to change the central bank’s mandate and seek to renegotiate the Trans-Pacific Partnership trade deals.
Concerns about a more protectionist agenda weighed on the currency and stock markets on Friday.
The New Zealand dollar fell to five month-lows of $0.6971 against the US dollar, after posting its biggest daily fall in more than a year on Thursday.
“The sentiment has now shifted toward more protectionist measures,” said Christina Leung, economist at New Zealand Institute of Economic Research.
“Generally, financial markets don’t like change, there is uncertainty over what this all means ... in the meantime that is reducing demand for New Zealand assets, and that’s why we are seeing the decline in the New Zealand dollar.”
The stock market was down 1.1 percent at the Friday open, but later recouped losses to stand in positive territory.
Ardern told radio earlier that most of the party’s flagship policies, including a ban on some foreign ownership of housing, had survived the negotiations with Peters in recent weeks.
“With New Zealand First we’ve got a few more details to iron out,” Ardern said. “Our plan remains, with a few minor changes ... we’re finalizing in the next 24 hours the detail.”
The election thrust the country into political limbo for almost a month with neither major party winning enough seats to form a majority and giving New Zealand First the balance of power.
New Zealand First and Labour also needed support from the progressive Green Party, which said it would strike a “confidence and supply” agreement, meaning it was officially outside government but would hold ministerial posts and vote on key pieces of legislation like the budget.
Ardern said the parties would release their agreements early next week and an announcement on ministerial posts would come later in the week.

India says it will ‘peacefully resolve’ border stand-off with China

Updated 58 min 31 sec ago

India says it will ‘peacefully resolve’ border stand-off with China

  • Development follows US President’s mediation in the dispute
  • Stand-off began in the first week of May when a scuffle broke out near Pangong Tso Lake

NEW DELHI: After weeks of a border stand-off between Indian and Chinese soldiers in the Himalayan region of Ladakh, New Delhi on Thursday announced it would resolve the matter diplomatically.

“India is engaged with China to peacefully resolve the matter. At the same time we remain firm in our resolve to ensuring India’s sovereignty and national security,” the Foreign Ministry said in a statement.

The development follows US President Donald Trump’s mediation in the dispute. In a Twitter post on Wednesday, Trump said, “We have informed both India and China that the United States is ready, willing and able to mediate or arbitrate their now raging border dispute.”

The stand-off began when a scuffle broke out near Pangong Tso Lake in the first week of May. According to Indian reports, Chinese troops set up dozens of tents on the Indian side of the Line of Actual Control (LAC).

A few days later, a Chinese patrol was stopped by Indian guards near the Nathula Pass in the Indian state of Sikkim. A troop build-up in the Ladakh and Sikkim areas followed the incidents. Reports suggested that 10,000 Chinese soldiers were sent to the border.

While New Delhi was still blaming China last week for “hindering” Indian patrols at the border, its Foreign Ministry announced on Thursday that “the two sides have established mechanisms both at military and diplomatic levels to resolve situations which may arise in border areas peacefully through dialogue and continue to remain engaged through these channels.”

Foreign policy experts say that in the absence of any concrete information it is difficult to comment on whether any resolution is actually taking place.

“The whole region of Ladakh is undefined, there is no agreed LAC, in some areas they respect each other’s position, and in some areas they don’t, which is the crux of the problem,” Prof. Srikanth Kondapalli, of Jawaharlal Nehru University in New Delhi, told Arab News.

“Geopolitical interests of both countries are at the center of the conflict,” Kondapalli said, “For India Ladakh is linked to its sovereignty. India has so many ongoing projects in that area. For China its ambitious China-Pakistan Economic Corridor (CPEC) passes not far away from the region and connect to the Gwadar port in Pakistan. Besides, once American troops leave Afghanistan and a new regime takes over Kabul this might have its implications in the region.”

Manoj Kewalramani, of the Bangalore-based think tank The Takshashila Institution, said that from a geopolitical perspective both sides need stability at this time and the current situation on the border is not helping either of them.

“Beijing is facing challenges on many fronts, an economic slowdown, tensions with the US, international anger amid the pandemic, protests in Hong Kong, etc.,” he said. “Likewise, New Delhi’s interests lie in managing the COVID-19 outbreak at home and focusing on reviving the economy.”