New Zealand and India agree to commence FTA negotiations

Trade Minister Tim Groser and his Indian counterpart, Kamal Nath, today agreed that New Zealand and India will launch bilateral Free Trade Agreement negotiations.

 

Mr Groser's discussions with Minister Nath focused on a Joint Study recently concluded by officials into whether the two countries should negotiate a Free Trade Agreement.

 

 

"Minister Nath and I agreed that the Joint Study confirms the considerable potential that exists to substantially develop the bilateral trade and economic relationship further, and that this would be enhanced significantly by a bilateral FTA.

 

 

"We agreed that, subject to the approval processes of both governments, the two countries will look to commence FTA negotiations as soon as possible.

 

 

"I expect the negotiations will get underway later this year," Mr Groser said.

 

 

"This is a very important step forward for New Zealand. We have the opportunity, with this FTA negotiation, to redefine our economic partnership with one of the world's emerging economic superpowers. 

 

 

"We have enjoyed strong ties with India for many years, through cricket, Sir Edmund Hillary and our Commonwealth connections. But these are not going to be enough as a basis for taking the relationship into the 21st century," Mr Groser said.

 

 

"We have not been paying as much attention to India as we should have. As a consequence, we are yet to realise the full potential in the trade and economic relationship.

 

 

"We export coal, timber, wool, hides and skins to India, but relatively few of New Zealand's traditional food exporters have been able to access the Indian market. 

 

 

"As well as working to improve the terms of access for our traditional agricultural sector, it is critical that we focus on emerging niche sectors in which New Zealand and Indian companies can collaborate. 

 

 

"India is a growing market for a range of New Zealand services and technology. Over 23,000 Indian tourists and 5,000 students came to New Zealand last year. India is also a major potential source of investment capital. 

 

 

"It is also important that we continue to work as "NZ Inc" to continue raising awareness of what New Zealand has to offer India.

 

 

"We have a great deal to offer India, including our world class expertise in agri-tech, agriculture, forestry, education and other sectors that India is keen to access.

 

 

"Our FTA negotiation will provide the impetus to take the New Zealand - India trade and economic relationship to a new level, including by providing an important focal point for an expansion of both traditional and non-traditional business collaboration," Mr Groser said

 

 

Mr Groser will travel to the cities of Pune and Mumbai for further business-focused meetings before leaving India for Thailand next Wednesday.