New Zealand’s efforts to build a business relationship with India cannot begin or end with finding markets for Kiwi goods and services, the India New Zealand Business Council (INZBC) has said.
The trade body has called on the government for a different approach as “India is different”, pointing out 15 years of efforts to negotiate a conventional trade agreement with India have “delivered nothing”.
In the report, titled ‘India & New Zealand: A Relationship Ready For Its Next Phase’ that was released on April 27, 2023, the organisation has emphasised the priority needs to be on strengthening the wider bilateral trade relationship with India.
“A comprehensive trade agreement is unlikely to be secured with India unless, and until, a deeper more trusting trade relationship is established. The message is that progress in trade liberalisation will involve understanding and acting on what New Zealand can do for India, just as clearly as what India can do for New Zealand,” read the report.
In 2010, former prime minister John Key made it a priority to settle a trade deal with India. But those talks ended about the time he visited New Delhi in 2016. Officials have often described India’s reluctance to offer concessions on New Zealand’s primary exports like dairy as a deal breaker when exploring a comprehensive trade agreement.
“The trade philosophy needs to be looking at what New Zealand can do for India as much as what India can do for us. We need to approach India in a coherent and strategic way,” INZBC Chairperson Earl Rattray says.
The latest report suggests the government must look beyond the traditional transactional approach and instead make India a diplomatic priority, pointing out New Zealand is at risk of being further marginalised as the centre of economic and geopolitical gravity shifts towards India.
“Regrettably, in the last 40 years there have only been four formal prime ministerial visits to India, and it is now fast approaching a decade since the last one occurred…there remains a widespread view that our highest-level government engagements in India are vitally important in advancing our relationship with India,” the report states.
The trade body recommends identifying sectors where India’s interests intersect with New Zealand’s capabilities in order to grow trade relationships; indicating agriculture, forestry, agritech, fintech, education and renewable energy would provide a good starting point.
“India will not come to us; New Zealand needs to be proactive in reaching out to India. But this should be done with strategic intent, deliberately building a foundation for the future. If the approach doesn’t change, the outcome won’t change,” the report states.
The report suggests prioritising diplomatic investment, faster processing of tourist visas for Indians, bringing immigration policies at par with those in Australia, Canada, and the UK; besides encouraging opportunities for Indian students to study in New Zealand.
Chairperson Rattray told The Indian Weekender developing a long-term diplomatic and trade relationship with India will require all government departments to work collectively, rather than acting in silos.
The INZBC has sent the report to the government. “We have asked the government to respond to us, tell us what they intend to do. We expect them to seriously consider our report and respond to us,” Ratrray says.
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