India and New Zealand strengthen economic ties with ongoing FTA negotiations

INdia and young sjaelland ar workings steady toward a Free Trade Agreement (FTA), with both sides committed to achieving a balanced deal that benefits citizens and strengthens economic ties, New Zealand's Trade and Investment Minister Todd McClay said on Wednesday.Speaking with media after a meeting where Union Minister Piyush Goyal and New Zealand Prime Minister Christopher Luxon attended an event with the Indian diaspora and community leaders, McClay said the two countries had made "great progress" in their negotiations. He added that while there was optimism on both sides, the focus remained on ensuring the deal was fair and durable.“We were committed early on that we would only launch negotiations if we thought we could get it done. Minister Goyal and I, with our officials, have been working very hard. There's been an unprecedented number of negotiating rounds so far,” McClay said during a media interaction. "We're committed to making sure the deal is balanced and is good for the citizens of both our countries. So we're optimistic. The governments have said we must do it, but we're also going to take the time to make sure we get it right," he added."It's fair to say that on both sides there are always challenges in a trade negotiation," he said. "What Minister Goyal and I have agreed is that rather than our negotiators arguing, we will find solutions together, and so far, I think we've made great progress."Reflecting on the broader relationship, McClay said that strengthening ties with India was a key strategic goal for New Zealand's government. "Christopher Luxon, when we were in opposition, said that if we formed a government, our relationship with India would be a strategic priority. We've seen that relationship grow very quickly over the last two years, from trade and defense to people-to-people connections," he said.McClay added that trade between the two countries had already begun to expand, helped by high-level engagements. "When we visited India with Prime Minister Luxon in March this year, when Piyush and I launched the negotiation, there were some 33 MOUs and agreements signed between New Zealand and India, including between Air India and Air New Zealand, with a commitment for direct flights by 2028," he said.Drawing a comparison with New Zealand's earlier trade partnerships, McClay said, "When we first signed a trade agreement with China 20 years ago, there was only a few billion dollars' worth of two-way trade. It's now grown to USD 40 billion. So the opportunities are huge."When asked about timelines for concluding the India-New Zealand FTA, McClay said, "We don't discuss deadlines when we finalize or negotiate a treaty. Every agreement stands on its own and happens at the right time."Union Minister Piyush Goyal echoed this approach, saying, "There never has been a time frame for any free trade agreement that we have negotiated."According to official figures from Statistics New Zealand and India's Ministry of Commerce, the total bilateral trade in goods and services between India and New Zealand reached USD 1.75 billion in 2023-24, with New Zealand exporting USD 0.84 billion worth of goods and services to India and importing USD 0.91 billion from India.India's key imports from New Zealand include wool, iron and steel, fruit and nuts, and aluminium, while its main exports to New Zealand comprise pharmaceuticals, machinery, made-up textile articles, and precious stones and metals.