India, New Zealand Target Trebling In Trade.

Two-way trade between India and New Zealand, currently worth $1 billion a year, could reach $3 billion annually by 2014 with concerted effort from both countries and reduced trade barriers, the two trade ministers have agreed.

In a communiqué at the end of a visit to Auckland and Wellington by the Indian Minister of Commerce and Industry, Anand Sharma, and hosted by Trade Minister Tim Groser, the two countries committed to an eight-to-10 month timetable for establishing a bilateral free trade agreement.

With India emerging as an area of strategic focus for New Zealand trade policy, the joint statement makes clear that India seeks opportunities in the services sector, while wanting New Zealand expertise in agriculture. New Zealand wants India to lower tariff barriers that add costs to export items like wool for carpet-making.

“The economic linkages between the two countries are much below potential,” the statement said. “It should be possible to ramp up our existing bilateral trade of $1 billion to $3 billion a year by 2014.”

The bulk of New Zealand’s exports to India today are coking coal, used in steel-making, and timber. However, there was potential for increased agricultural exports, including dairy, and horticulture, which tend not to compete with Indian industries.

“Wool from New Zealand goes into carpet-making and hence boosts Indian exports,” said Groser. India needed to liberate trade access to free up investment opportunities, with an aim of concluding a new free trade agreement within eight-to-10 months.

“The FTA will be our single most important bilateral platform for increasing trade,” Groser said.

For its part, India believed it had much to offer New Zealand in terms of low-cost generic pharmaceuticals from its world-class manufacturing facilities, with Sharma saying “India’s high quality health sector could help countries like New Zealand to bring down their public health costs.”

Financial services, education and tourism were also identified as areas of potential mutual benefit.

Sharma called for a working holiday programme between the two countries, a new scheme to allow inter-firm mobility for professionals, and for dialogue on mutual recognition standards and social security arrangements.

Source : scoop.co.nz