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Following Cabinet's agreement to enter into Free Trade Agreement (FTA) negotiations with India, subject to completion by India of its own approval processes, the Ministry of Foreign Affairs and Trade is calling for submissions from interested stakeholders.
This is the next step in a process that began in April 2007 when the New Zealand and Indian Trade Ministers agreed to undertake a Joint Study on the feasibility of negotiating a New Zealand-India Closer Economic Cooperation Agreement/Free Trade Agreement. The report, tabled recently, concluded that an FTA would increase both countries' real GDP and welfare. The report outlines the relatively underdeveloped relationship between the two countries and highlights the potential an FTA would offer for growth in New Zealand exports to India and in the bilateral trade relationship more generally.
India's economic growth in recent years has been strongly positive and GDP is expected to continue to grow at around 8% per annum until 2020. A Goldman Sachs report in 2007 predicted that India will become the second largest economy in the world by 2050.
The launch of negotiations is still subject to the approval of the Indian government but the recent discussions between Indian Minister of Commerce and Industry Kamal Nath and New Zealand Trade Minister Tim Groser have indicated that both parties are keen to proceed to a negotiation phase. It is hoped that negotiations could commence during the second half of 2009.
In preparation for the possible commencement of negotiations later in the year, the Ministry of Foreign Affairs and Trade is calling for submissions from interested stakeholders. Submissions and access to the report of the Joint Study Group are available below
It would be appreciated if comments or submissions could be received by 29 May.
