This month, the Indian Government decided not to join the Regional Comprehensive Economic Partnership (RCEP), which had been negotiated over the past decade. While, not giving the Chinese manufacturing sector an easy access to Indian markets was the most-often stated reason, not opening the Indian diary sector to New Zealand dairy industry is another probable reason. We ask the two most influential India-New Zealand trade groupings, on what they think will be the future of India-New Zealand trade ties.
Sameer Handa, Chair of India New Zealand Business Council:
“This definitely came as a surprise to all of us. But we do acknowledge and understand the Indian concerns on the dairy sector. So in our view, the path forward for India-New Zealand trade relations would be to focus more on trade of high quality, and premium products. Much like the New Zealand lamb, wine and kiwifruit, instead of milk solids, we should think about exporting value-added diary products such as cheese, to India. Secondly, our focus should be more on services, instead of just products. That’s why our past few conferences have been on space technology, and aviation. Fintech is another sector with huge potential. Thirdly, industry to industry collaboration is the way forward. We believe, instead of waiting for a FTA or a multilateral agreement, to happen between the two countries, industry players should take the initiative, and find partners and do business tie-ups.”
Surinder Ogra, Secretary of New Zealand India Trade Alliance:
“We believe all is not lost with India deciding not to join RCEP at the moment. If India’s concerns are addressed, the Indian Government might reconsider and join. Secondly, maybe it’s time, we move towards having a FTA between the two countries. We believe that the Indian Government is looking to sign FTAs with bigger economies such as the US, European Union, and Australia. An FTA between India and New Zealand can become a test case for such agreements to happen in future. And if agriculture is an issue, we can leave that out of this potential FTA, and deal only in the services sector etc.”
-Gaurav Sharma (Pic courtesy: Twitter)
