PM Key says Indian FTA would reduce reliance on China 13 Mar 2015
Fiona Rotherham
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Minister launches SmartGate in Wellington Travel
- Prime Minister to travel to South Africa News
- New Zealand-Russia begin FTA scoping discussions News
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
March 13 (BusinessDesk) - Prime Minister John Key says a free trade agreement with India would help New Zealand reduce its dependence on the Chinese market, which is the country's biggest trading partner.
Speaking at an Indian New Zealand Business Council summit in Auckland today, Key said while he was a big defender of New Zealand’s free trade agreement with China and the benefits that it has delivered including a big increase in two-way trade, one of the concerns is “being too China dependent”.
“New Zealand’s had experience before in being too dependent on one market when it was essentially Britain’s farm in the South Pacific. There’s a long-term risk that New Zealand could get to the point of being totally Chinese dependent and for whatever reason that relationship sours,” he said.
New Zealand started negotiating a free trade agreement with India some years ago and has just completed the 10th round of negotiations after an 18-month hiatus.
Key said the FTA would only really happen if Indian companies lobby their government for it to happen.
“There will always be resistance. But there is no doubt from an economic perspective we see real opportunities in India and vice versa,” he said.
Rupert Holborow, the Ministry of Foreign Affairs & Trade official leading the FTA negotiations for New Zealand, said there was still “considerable distance” to closing a comprehensive FTA with India. “I can’t see it happening immediately, it will be a tough, long road ahead.”
Benefits to New Zealand are obvious given India is forecast by the International Monetary Fund to have a higher growth rate than China this year – 7.2 per cent compared to 7 per cent.
Some of the IMF’s growth forecast is due to changes in the way India measures economic output but Indian Prime Minister Narendra Modi is also expected to deliver growth and job creation and stronger corporate investment.
Holborow’s message was that New Zealand businesses should not hold off on engaging with market opportunities in India in the interim, even though those opportunities “won’t be so easily recognised without a FTA.”
Indian High Commissioner to New Zealand HE Ravi Thapar said the biggest difference between negotiating an FTA with India to China was that the state had more control in China whereas India had a democracy and it was the private sector and industry that would “face the onslaught” from opening up further trade with New Zealand.
Thapar said any FTA with New Zealand would need to involve economic engagement, technology transfer and entry to the services sector as well as trade.
He also said engagement between the two countries shouldn’t be contingent on an FTA that will take some time to tweak and work through the Indian system.
The size of the Indian market, which has a population of 1.2 billion, is attractive to New Zealand companies which have developed smart and innovative technology but have a small domestic market that doesn’t allow it to be easily commercialised, he said.
“New Zealand’s technology transfer could benefit India’s industry. That is what should be given more priority,” he said.
There is currently declining trade between New Zealand and India and Chandrajit Banerjee, director general of the Confederation of Indian Industry, said an FTA would be a challenge.
He listed several key areas where New Zealand companies could look to gain an entry into the Indian market. These include helping modernise India’s agriculture and food processing, green technology and smart homes, collaboration on education, particularly with New Zealand universities, electronic hardware, skills and vocational training, and aviation.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more