Thursday 30 June 2011

New vistas for India-New Zealand trade

New Zealand and India may well appear to be two widely different nations in the Asia-Pacific region, but we share strong and deep people-to-people links across sport, education and tourism. This week New Zealand Prime Minister John Key and I, along with a delegation of senior New Zealand business and government leaders, have had a chance to build on these bonds - from the boardroom to Bollywood.

With both countries committed to strengthening the existing bilateral relationship, developing greater economic interaction and enhancing socioeconomic cooperation, the New Zealand-India relationship has a solid base for strong growth and development.

Over the past 12 months, India has become New Zealand's seventh largest export market, with exports increasing by 40% from March 2010 to March 2011. There has also been growth in imports and two-way trade between India and New Zealand is now at NZ$1.28 billion per annum.

But both the New Zealand government and our counterparts here in India believe that this relationship has much further to grow - and it is in the interest of both nations to realise this potential.

There has been much talk during our visit about our recent Free Trade Agreement negotiations, which are still in discussion. A comprehensive FTA is the single-most important bilateral platform for increasing trade, allowing more open access and investment flows, and its conclusion would provide the impetus for each country to grasp mutual benefits.

The FTA will provide a platform for the New Zealand-India economic relationship to soar. It will improve business and investment links between both countries. It will set up a more strategic relationship, offering partnership and development opportunities across industries - for example, New Zealand helping India to meet food security objectives. India is looking to ramp up production to meet increasing demand and New Zealand has a long agricultural history.

We are widely regarded as leading the international farming community in animal welfare, traceability and food safety, and agricultural sustainability - and we believe we can work closely with the agricultural sector in revolutionising post-harvest management logistics in India.

New Zealand can also offer technology in a broad range of areas, including agri-processing, food processing, technology transfer in refrigeration, cold chains, storage and logistics for minimising post-production losses.

New Zealand's interest is in growing trade in agricultural products, including dairy, horticulture and wine. But we are aware of the need to complement, rather than compete with, Indian goods - as with apples. New Zealand is not just known as a safe food basket though - we also have niche skill-sets, in areas such as aviation, wood, ICT, high-value manufacturing, and green technologies.

During the New Zealand delegation's time in India, I was happy to witness the signing of a memorandum of understanding (MoU) between New Zealand technology company Finzsoft and HCL Technologies , around innovative banking software. The two companies will work in partnership to deliver new high-value technology solutions into India, New Zealand, Australia - and ultimately further afield. 

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