Key Heads To India, Pushing Free Trade.

Prime Minister John Key is due to land in Delhi later this evening (Monday morning NZT) for three days of bilateral talks.

28 business leaders are travelling with the prime minister to India, one of the world's top five fastest growing economies.

With negotiations under way for a free trade agreement (FTA) between the countries, Mr Key said the visit would be an important opportunity for New Zealand to develop its relationship with India.

There is plenty to discuss. India has high tarifs on many imports, including New Zealand beef and dairy, largely shutting out exporters out of its market.

But Trade Minister Tim Groser hopes that the recent FTA with China (which maintains some tarifs on New Zealand primary produce) can be used as a template, pushing the prodcess along.

“We’re rapidly growing trade links with India -- we exported around a billion dollars to them last year. We know from the size of the Chinese market how big the opportunities can be,” Mr Key told media en route to Delhi.

“The aim of this trip is to broaden and deepen our relationship, to hopefully to sign a free trade agreement, potentially, in 2012.”

Mr Key said there was a huge market in India for a lot of the things New Zealand wanted to sell.

“Particularly dairy products, but also education, manufacturing, and other services. It’s a competitive market and one where New Zealanders can do well,” he said.

“Across a whole range of different categories, if we can complete an FTA and get better access to their market … it means better opportunities for New Zealanders.”

While the trade deal would benefit New Zealand hugely, Mr Key said the advantages to India could not be discounted, particularly with regard to food supply issues.

“I think the Indian Government is well and truly aware of the opportunities to service its own market and to expand its market … New Zealand’s an interesting market from their point of view too.”

Although the FTA was the ultimate goal, Mr Key said the focus of this week’s visit would not simply rest on trade, and that discussions would cover a number of common issues.

With about 28 New Zealand business leaders along for the ride, there is a clear push to develop contacts in the Indian business community.

Former New Zealand cricket captain Stephen Fleming is also among those on the trip, suggesting the countries’ sporting ties are on the agenda too.

Source : nbr.co.nz