Leaving New Delhi with a series of signed documents, but the agreement to restart negotiations on a Free Trade Agreement (FTA) with India is the result that New Zealand Prime Minister Christopher Luxon is most satisfied with.
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| Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, March 17. (Source: X) |
New Zealand governments, regardless of party, have long advocated for closer ties with India. In 2011, Wellington even launched a “New Zealand Inc. India” strategy to make India a core trade, economic and political partner for New Zealand.
However, at present, bilateral trade turnover is still only a meager 870 million USD/year. Although it knows that it can gain many benefits from the FTA, due to internal problems, India refuses to reduce tariffs on the dairy industry, a field that is New Zealand's strength. Therefore, since the two countries started negotiating the FTA, 20 years have passed and this goal is still on paper.
But now New Zealand's economy is facing many difficulties, inflation is rising. India is facing negative impacts from US President Donald Trump's new tariff policy.
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| New Zealand Prime Minister Christopher Luxon speaks at the India-New Zealand Economic Forum on March 18 in New Delhi. (Source: X) |
Compromising to sign an FTA seems to be a mutually beneficial solution in the current complex and volatile situation. While India can diversify its export markets and minimize the impact of new US tariff policies, New Zealand has the opportunity to access a market of nearly 1.5 billion people.
If this agreement is signed, it will be a major breakthrough in the economic relationship between India and New Zealand. Through trade, the two countries can boost their economies, create more jobs and increase the income of their people.
New Delhi and Wellington are “looking to build a new bridge” to come together and Christopher Luxon's visit has built the first step towards that ambitious goal.
Source: https://baoquocte.vn/thu-tuong-new-zealand-tham-an-do-chuyen-cong-du-bac-cau-308231.html
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