In a diplomatic move, New Zealand businesses have expressed their keenness to delve into limited trade arrangements with India, focusing on sectors such as agriculture, dairy, and horticulture. These endeavors have come to light after bilateral talks on a free trade agreement (FTA) between the two nations hit a roadblock back in 2015.
During a recent delegation visit to Delhi, representatives of Kiwi trade groups articulated their interest in forging these limited arrangements to foster economic collaboration. New Zealand’s Minister of Trade and Agriculture, Damien O’Connor, emphasized the significance of building strategic partnerships during his visit to India in August.
In an attempt to resurrect stalled FTA negotiations that commenced in 2010, business entities from both countries are exploring alternative avenues to boost commerce. Stephen Jacobi, the Executive Director at the New Zealand International Business Forum and a former trade diplomat, stated, “We’re always going to be interested in an FTA but it’s not on the agenda right now. We need to think about other ways.” These “other ways” may encompass collaborative efforts in sectors like horticulture, aiming to benefit both nations.
Simon Bridges, CEO of the Auckland Business Chamber and former leader of the Opposition, noted that New Zealand companies have increasingly turned their focus towards India, diversifying away from an overreliance on Chinese markets.
Despite these diplomatic maneuvers, annual bilateral trade between the two nations has remained below ₹2 billion over the past five years. India currently stands as New Zealand’s 11th largest trading partner, as per the High Commission of India in Wellington.
In this complex landscape of international trade, New Zealand’s aspiration for limited trade arrangements with India reflects a pragmatic approach in the absence of a comprehensive FTA. These diplomatic efforts aim to open new avenues for economic cooperation and, in doing so, strengthen the ties between the two nations.
