New Zealand proposes FTA with India
Financial Express, India
New Zealand proposes FTA with India
By Ashok B Sharma
24 March 2008
New Delhi, March 24: New Zealand has proposed to have a free trade agreement (FTA) with India. It also wants that India import wine, dairy and timber products to boost the bilateral trade between the two countries to more than 616 million NZ dollars.
Speaking to FE, the visiting New Zealand minister for agriculture, forestry, bio-security and forestry, Jim Anderton said: "In our meetings with the Indian science and technology minister, Kapil Sibal and agriculture minister, Sharad Pawar, we proposed that there should be a FTA between the two countries. Tomorrow, I would also be meeting the Indian commerce minister, Kamal Nath with the same proposal for a FTA."
Anderton is leading a business delegation to India consisting largely of timber industries.
He said that in his meeting with Sibal a MoU was signed for research and development in the areas of climate change, dairy development and other areas of scientific and technological cooperation. He said that during his discussion with Pawar, though no MoU was signed but both sides agreed to increase cooperation in agriculture and sort out the issues of bio-security, sanitary and phytosanitary and quarantine norms at the earliest.
India and NZ already have a MoU on plant quarantine issues. A tripartite MoU among Indian Council of Agricultural Research, Land Care Research and Massey University, New Zealand is also being discussed and will be signed as soon as all the clearances are available.
Anderton said : "India need not fear to import dairy products from New Zealand as it is a major producer of milk and yet not a major exporter of dairy products. We should understand the counter-seasonality of the agri-products in both the countries and accordingly liberalise trade. NZ companies are eager to enter into joint ventures with Indian companies to boost the dairy sector."
He said that India should understand the importance of maintaining its natural forests and allow easy imports of high quality timber products from NZ, which can used used in construction industry and in home interiors and exteriors. He said that a FTA can adequately take care of the tariff regime.
Anderton informed that his country would sign a FTA with China in April this year which would include a number of agro commodities.
"India is regarded as a priority relationship for NZ. Last year both the countries agreed to study the implications of a FTA, which is a clear indication of our commitment to the relationship," he said.
NZ has 80% of its forest area under the private sector, while only 20% are in the government sector so as to ensure the claims of the indigenous people - the Moaris.
"We have large areas of sustainable forestry of exotic trees where harvesting and plantation take place," said Anderton.and added Indian investors can take up plantation on lease basis with 25% equity.
NZ wants to boosts its exports of soft wood, particularly, radiate pine and also laminated timber (Glulam), Douglas fir, eucalyptus grandis, various China species and wood pulp
Anderton said that exports of chip woods were not viable. Chip wood is required by the paper industry. He said that joint ventures in timber industry in India could be possible if both sides were willing
NZ wood industry currently generates $ 3.1 billion in exports (or 3.15% of GDP) with India as NZ’s fifth largest export market for wood products, worth 65 million NZ dollars in 2007.
NZ’s total exports to India rose to 366 million NZ dollars in 2007 while India’s exports to that country was around 250 million NZ dollars.
