A proposal linking New Zealand and India through a Free Trade Agreement (FTA) appears to be on track but it would be too early to predict a timeframe for conclusion of the negotiations.
It is understood that the two countries were also considering a Closer Economic Cooperation Agreement (CECA), alongside a Free Trade Agreement.
India New Zealand Business Council Chairman Wenceslaus Anthony was cautiously optimistic about a timeframe but said there was a willingness on both sides to conclude the Agreement within the next 12 months.
He based his premise on the public comments made by both governments in recent months.
“We are pleased with the progress made so far and the comments have been encouraging. But it is beyond the remit of the Council to project any particular outcomes or guess at a date when the FTA may be concluded,” he said in a statement issued in Wellington.
He said the Council, which comprises a cross-section of businesses, was supportive of an Agreement and had contributed to the consultation process.
“We have provided the Foreign Affairs and Trade Ministry with a detailed submission,” Mr Anthony said.
A Trade Ministry statement said that the third round of negotiations held between the New Zealand and Indian officials in Wellington in October 2010 was satisfactory and that the next meeting will be held this month in New Delhi.
“This Round included discussions on goods, market access, rules of origin, customs, trade remedies, technical barriers to trade, sanitary and phytosanitary issues, services, investment and economic cooperation and other issues.
“Both sides will participate actively in a range of inter-sessional engagement to facilitate progress on these various issues leading into the next round,” the statement, posted on the Ministry website, said.
According to the statement, the first two rounds concentrated on the expectations from both sides. Indian officials had opportunities to apprise themselves of the functioning of the important sectors of the New Zealand economy, it said.
Public comments and submissions could be sent to Joanne Down, Coordinator for the FTA in the Trade Ministry at joanne.dow@mfat.govt.nz
Trade Minister Tim Groser, who was actively involved in commencing the negotiations process since he took office in November 2008, is also keen to bring the FTA to a fruitful and mutually beneficial conclusion.
“A Free Trade Agreement with India offers great promise for New Zealand businesses. India is already one of our fastest growing markets, with New Zealand exports having tripled over the last decade,” he said in an earlier statement.
Mr Groser also met India’s Commerce & Industry Minister Anand Sharma on the side lines of the World Economic Forum in Davos, Switzerland in January 2009, which is believed to have been a catalyst in the start of the negotiations soon thereafter.
As per the Ministry’s figures, New Zealand’s exports to India were valued at $NZ630 million in 2009, accounting for an increase of 280% from 2001, while the total value of bilateral trade reached $NZ 985 million from NZ$353 million during the same period. Bilateral trade could have crossed the $NZ 1 billion mark in 2010, with the balance of payments in favour of New Zealand.
Visit www.mfat.govt.nz for updates.
