Asserting that building a strong relationship with India is on the cards, New Zealand’s Trade Minister, Tim Groser on Tuesday said it is the number one foreign policy priority of the John Key Government.
Indicating a strong bonding with the Indian Government, Mr. Groser told visiting Indian journalists that New Zealand was ready to offer greater market access to Indian professionals under the proposed free trade agreement (FTA) being currently negotiated between the two nations. “India is fast emerging as a super power. It will be in the top three during the next decade along with US and China. It has become a top priority of our foreign policy agenda aimed at enhancing the economic engagement,’’ he added.
Stating that the PTA negotiations were progressing well, Mr. Groser said his Government will make necessary offers to India in services (under the proposed FTA), throwing open the decks for Indian professionals to get more visas into New Zealand. “We want quality people to join hands with the people and government of New Zealand, and we do not mind giving access to this category. You cannot establish a business relationship without facilitation of movement of persons,’’ he added.
India and New Zealand are negotiating a Comprehensive Economic Cooperation Agreement (CECA) and have already completed five rounds of talks. The negotiations started in 2010. The CECA would cover trade in goods, services and investment. According to official data, bilateral trade between the two countries amounted to $755 million in 2009-10.
However, he said New Zealand was looking at the dairy sector of India for enhanced cooperation and engagement. “We are not going to go into India in a big way, but we are going to contribute in a qualitative manner. We certainly are looking at exports of dairy products to India as that country needs such products in view of the growing domestic demand,’’ he said.
India's Commerce and Industry Minister Anand Sharma, who is leading a high-level FICCI business delegation here, said the trade pact would have a separate chapter on services. He said that free trade pact in services will ensure greater market access for both the service providers as well as movement of professionals in New Zealand.
Mr. Groser said that the sensitivities related with the services sector would be discussed. “We will have to handle sensitivities around this. We cannot have unqualified people knocking our front doors and doing poor jobs. The pact in services is doable and it is also in our interest to facilitate services sector,’’ he remarked. The services sector is of key interest to India as it contributes over 55 per cent to its GDP.
India has already implemented comprehensive market opening pacts which includes the services sector with Singapore and South Korea. It has signed similar pacts with Japan and Malaysia.
