Editorial One
While there is a pronounced need for closer relationship between New Zealand and India on trade, commerce and investment, there has been no progress at the government level, except for repeated rhetoric at all levels.
The main problem appears to be a mismatch of ambition and willingness to move forward. New Zealand has been seeking a Free Trade Agreement since 2007 (when the first move was made unofficially by Tim Groser, then in Opposition during his private visit to Delhi in March that year and the official kick-start by then Trade Minister Phil Goff). Since then, except for meetings in both countries and the ‘promise of returning to the discussion table,’ nothing much has happened. Two-way trade remains at a dismal $1 billion, largely in favour of New Zealand.
Direct air-link between two countries remains a proposal in the air despite a Civil Aviation Agreement signed more than ten years ago and there is constant talk of a ‘more aggressive pursuit of a Free Trade Agreement.’
Nothing tangible
On its part, New Zealand has not demonstrated its enthusiasm strong enough to convince India that it is serious about a more constructive engagement with the world’s largest democracy (except for saying forever that we share democratic traditions) and soon-to-be the world’s most power economy (unimpressive trade performance as mentioned above).
But our politicians, including Prime Minister John Key, Trade Minister Tim Groser and Tertiary Education Minister Steven Joyce are optimistic and are perhaps willing to go an extra mile to achieve their objective of getting closer to India.
None of the trade bodies including those of the government and those of the private sector has achieved anything tangible in this direction.
Fragmentation hits
The India New Zealand Business Council (INZBC) had grand plans of working with such mammoth organisations as the Federation of Indian Chambers of Commerce & Industry, the Confederation of Indian Industry (CFII), Associated Chambers of Commerce of India (ASSOCHAM) and the Punjab, Haryana & Delhi Chambers of Commerce & Industry. However, these plans have remained largely on paper, and save for a few meetings, there has been no concrete activity. INZBC continues to be an opaque organisation, not willing to share its activities with the larger public or even interact more effectively with the Indian media.
There have of late been rumours of internal squabbles and fragmentation. There are also fears that it may become irrelevant or merge with the Indian High Commission-led initiative, the New Zealand India Friendship Association (NZIFA), especially since a number of top INZBC officials have vested interests in it.
That may be a blessing in disguise. So long as NZIFA remains under the control of the Indian High Commission, the Organisation may grow to become a truly effective Indian body to engage with India at the government and business levels. But it must broaden its outlook, become more inclusive and enthuse new blood into its hierarchy.
India’s quest
A visiting group of Parliamentarians told a meeting of Indian businesses and community leaders at a dinner jointly organised by INZBC and NZIFA in Auckland on June 2 (please read our report under Businesslink) that New Zealand should help in India in skills training.
There was then a repetition of the ‘Technical Partnership’ cliché to mean that FTA with New Zealand would be less attractive for Delhi.
India, like any other sovereign nation, has the right to choose its list of priorities which at the moment does not include a Free Trade pact with New Zealand.
New initiatives
If that is a given fact, New Zealand should then consider its alternative strategy of boosting individual sectors, the most important of which would be business, trade and investment.
We heard the other day that New Zealand would be a partner in the establishment of Asian Infrastructure Investment Bank with about $150 million as its investment. The Chinese-led initiative would hopefully provide some opportunities for New Zealand to be involved in infrastructure of the emerging economies of Asia.
We will await further developments with interest.
