Move to speed up India FTA
Stuff.co.nz
Move to speed up India FTA
By Romy Udanga
9 May 2011
New Zealand and India want to fast track a proposed free trade agreement that will treble trade between the two countries from $1.2 billion to $3b by 2014.
Trade Minister Tim Groser and India’s Commerce and Industry Minister Anand Sharma told about 200 attendees at an India-New Zealand Joint Business Council meeting in Auckland this morning that the economic agreement would be top of the agenda during the next two days’ discussions.
Groser said Sharma’s visit, at the invitation of the New Zealand Government, was an excellent opportunity to advance negotiations.
He said New Zealand placed a "very high priority" on strengthening the relationship with India.
"Our two-way merchandise trade was worth over $1.2 billion in 2010, and India is an increasingly important source of tourists and students coming to New Zealand, but there is potential to do more.
"The free trade agreement is an exciting prospect. It will provide a framework for our trade and economic links to reach that potential. The more open access and investment flows that can come from the FTA will be of benefit to businesses in both countries," Groser said.
Sharma is scheduled to meet Prime Minister John Key, Agriculture Minister David Carter and Groser during the next two days.
He said he hoped the FTA would be in place by the first quarter of 2012 and for trade between the two countries to reach $3b by 2014.
Sharma is accompanied by 30 delegates from India, led by Robin Banerjee, chief financial officer of Suzlon Energy.
The New Zealand delegation is headed by Wenceslaus Anthony who chairs the India New Zealand Business Council.
Banerjee said India’s $255 million exports to New Zealand, and New Zealand’s $500m exports to India "does not reflect the true potential between the two countries and it is necessary to widen the narrow base of commodities traded".
Among the areas identified for joint venturing were agriculture technologies, food supply chain, and wood and green technologies. IT innovation, tourism and film were also possibilities.
The seeds of a Free Trade Agreement were sown with a study in 2007.
It progressed in 2009 after the two governments approved its basic framework. Official negotiations started in early 2010.
