Venkat Raman
Auckland, August 21, 2023
Saurabh Kumar, Secretary (East) at the Ministry of External Affairs, New Delhi has just completed an official visit to New Zealand, providing an extended opportunity to the government in Wellington to engage with India more meaningfully to accrue mutual benefits.
Mr Kumar attended an informal dinner hosted by High Commissioner Neeta Bhushan in Auckland on Saturday (August 19, 2023), which, he said, “helped to meet the people of Indian origin and gain a better understanding of their aspirations and feelings towards India.”
A day earlier (Friday), he held talks with Chris Seed, Chief Executive and Secretary, Ministry of Foreign Trade (MFAT), Deborah Geels, Deputy Secretary (Americas and Asia Group) and other officials at the Ministry, along with Ms Bhushan.
Details of such discussions are usually not released but Ms Bhushan tweeted, “Both sides took note of the recent momentum in high-level engagements and the need to sustain this.”
Renewing relationship
Relationship between India and New Zealand sunk to a new depth on October 6, 2022 when Foreign Minister Nania Mahuta announced at a joint media conference with visiting External Affairs Minister Dr Jaishankar Subrahmanyam that “free trade talks with India are not a priority for her government’ and that ‘the emphasis had shifted to business-to-business relationship.’
Since then, however, there appears to be a new-found realisation, with the New Zealand government trying to atone for its mistake. In February this year, Ms Mahuta visited New Delhi and held bilateral talks with Dr Jaishankar, Mr Kumar and other officials at the Ministry.
“Reconnection New Zealand remains a key priority as we look to strengthen our economic resilience and progress ties with our international partners. New Zealand sees India as a core and influential partner in the Indo-Pacific and we have welcomed their participation in the Indo-Pacific Economic Framework,” she said.
Prime Minister Chris Hipkins met his Indian counterpart Narendra Modi on the sidelines of the Forum for India-Pacific Islands Cooperation Summit in Papua New Guinea on May 22, 2023 and accepted his invitation to visit India. But that would eventuate only if Mr Hipkins is able to form a Labour government after the general election on October 14, 2023.
Meanwhile, Trade and Agriculture Minister Damien O’Connor will be visiting New Delhi shortly for bilateral talks with ministers and officials.
National Party Leader Christopher Luxon and the Party’s Trade Spokesman Todd McClay have said that they will recommence Free Trade Talks with India ‘on a clean slate’ if elected to form the next government. Mr McClay told Indian Newslink, “My first overseas trip as Trade Minister will be to India to initiate these talks.”
India-New Zealand 2025 Strategy
Five years ago, MFAT released its India-New Zealand 2025: Investing in the Relationship’ strategy, in which it recognised the growing influence of India in the Indo-Pacific region and beyond.
In his forward as the Minister of Foreign Affairs, Winston Peters had described India as the world’s largest democracy and the world’s fastest-growing major economy, currently the fifth largest.
“By 2025, India will have the world’s largest population. That population will be youthful and increasingly well-educated, making it a vast global source of both skilled labour and consumers. But New Zealand also has much to offer India,” he said.,
Mr Peters said that New Zealand is recognised as a principled contributor to the multilateral system.
“We are innovative and entrepreneurial, we have world-leading expertise in the creative industries, agriculture, and the environment, and a common interest with India in technological advancement. The Indian Diaspora makes up 5% of New Zealand’s population and is growing,” he said.
The Strategy had set six goals. They were 1. A relationship based on mutual trust that advances shared interests 2. New Zealanders have improved their capability for engaging with India 3. Goods and services trade grows for shared prosperity 4. New Zealand’s value proposition is known and understood 5. Stronger and broader cultural connections between New Zealand and India 6. Shared approaches bilaterally and in international fora.
The darkening Chinese cloud
The People’s Republic of China has been following an aggressive policy of economic expansion in the South Pacific and its position of dominance in some countries through the so-called Security Pact is seen as an unwelcome trend. While Australia has pushed back Beijing, attracting in the process trade backlash, New Zealand is reluctant to follow suit.
Mr Kumar was hopeful that the recommencement of bilateral talks will lead to tangible results.
India gets assertive
From its non-committal, nonalignment stance of the 1960 and 1970s, India’s foreign policy narrative has undergone significant changes, yet retaining its highly valued diplomacy. The country has become an active participant in multilateral dialogues, leading several global initiatives that seek cooperation for social and economic progress.
Under the leadership of Mr Modi, India is today a lead player in geopolitics and its growing importance as a major economic power will shift the focus from the West to the East.
New Zealand should therefore be aware of the new realities while negotiating with India and its growing aspirations. It will be useful to note that 1. India will always seek political and economic partnerships that are mutually beneficial and progressive and non-intrusive and non-restrictive 2. Trade agreements should not undermine India’s primary sectors 3. India seeks easy mobility for its people to trade, invest, pursue higher education and for holiday travel 4. India has a genuine need for resources to meet its defence, energy and other requirements and 5. Joint action is required to combat terrorism and its funding.
Unrelenting position
The Indian government is business-friendly but it is not in the interest of India to relent from its position relating to the removal of tariffs on agricultural imports. This has been the main thorn in the flesh of several non-starter FTAs.
From that standpoint, the FTA signed by India and Australia is not a ‘complete pact,’ for it neither includes dairy products nor visa-free travel of people. On that score, the FTA signed by New Zealand and the United Kingdom also excludes Agriculture, but gains have been made in other areas including a longer Overseas Experience for New Zealanders in the United Kingdom and vice-versa.
New Zealand has never demonstrated its enthusiasm strong enough to convince India that it is serious about a more constructive engagement.
Politics has not been helpful in strengthening the relationships between the two countries.
It is time it did.
