India and New Zealand Pledge to Strengthen Economic Ties Through Comprehensive Free Trade Agreement

India and New Zealand are making strides towards a comprehensive Free Trade Agreement (FTA) as their commerce ministers engage in detailed negotiations. The discussions focus on strengthening economic cooperation, with a commitment to fairness and balance, aiming for growth across key sectors including agriculture, technology, and sustainable development.

As part of an ongoing endeavor to enhance economic ties, India and New Zealand have reaffirmed their commitment to a balanced and comprehensive Free Trade Agreement (FTA). Union Minister of Commerce and Industry Piyush Goyal met with New Zealand's Trade Minister Todd McClay in Auckland to evaluate ongoing negotiations, emphasizing the potential for both nations to benefit from strengthened economic cooperation.

Goyal, currently visiting New Zealand, highlighted the positive and respectful atmosphere of the discussions. He expressed appreciation for McClay's warm reception, indicating that the partnership is poised to grow through mutual understanding. "Delighted to be in New Zealand to review the progress of the ongoing FTA negotiations. Grateful to my good friend and counterpart, Todd McClay, for the warm welcome," noted Goyal.

During a speech at the New Zealand-India Business Forum, Goyal stressed the need for realistic expectations and long-term vision in trade relations, contrasting it with agreements with the European Union or ASEAN due to different scales. Despite modest current trade volumes, significant growth potential exists. Key sectors for collaboration include agriculture, maritime cooperation, aerospace, and defense. McClay attested to India's strategic priority status, noting the focus on fairness and balance in negotiations.

Both ministers emphasized the enduring benefits of the FTA, which is designed to serve citizens over the next two decades. The fourth round of talks, starting November 3 in Auckland, marks a significant step in enhancing bilateral trade ties. Direct flights between Air India and Air New Zealand, projected to commence by 2028, aim to bolster business and cultural exchanges. Concluding the talks, Goyal underscored the importance of addressing all concerns thoroughly before finalizing a durable trade deal.

According to official statistics, the bilateral trade between India and New Zealand amounted to USD 1.75 billion in 2023-24, highlighting the vast potential for expansion. In its bid to secure long-term growth, India actively negotiates trade agreements with multiple nations, including New Zealand.

(With inputs from agencies.)