India, New Zealand to study on FTA implications
Economic Times, India
India, New Zealand to study on FTA implications
PTI
22 April 2007
MELBOURNE: India and New Zealand have agreed to study the potential for a free trade agreement between the two countries.
The two countries have agreed in principle to conduct a study on what such a trade agreement could mean for the two countries, New Zealand Trade Minister Phil Goff on Sunday announced after talks with his Indian counterpart Kamal Nath in Wellington.
"While achieving a free trade agreement with India would require us to overcome significant obstacles, agreement in principle to conduct a study into what such an agreement would mean for both of our countries would be a good start," Goff was quoted as saying by the media here.
Trade between the two countries is small, but growing fast. "New Zealand-India two-way trade is at less than $650 million compares with nearly $7 billion in our two-way trade with China," Goff said adding he had raised concerns about significant barriers to New Zealand goods entering the Indian market.
"In my discussions with Commerce Minister Kamal Nath, I also raised our specific concerns about tariff and non-tariff barriers," he said. "Tariffs on key New Zealand food and beverage items are high, and food safety controls, which exceed international standards, can prevent trade in areas such as dairy and meat," he said.
Goff said education and tourism interests in New Zealand were expanding in India and there was potential for a direct air service between Auckland and Mumbai within a few years to assist trade.
"New Zealand has much in common with India, including language, political and legal institutions and a long-standing and warm relationship, which should make trade easier," he said. The study is to be developed further at a meeting expected to be held in September.
