IWK

“New approach”: Trade minister signals shift in NZ-India relations

Written by IWK Bureau | Aug 29, 2023 3:35:22 AM

A “short-term, narrow and transactional approach” would not work if New Zealand were to forge stronger relations with India, Damien O’Connor has said.

The Trade and Export Growth Minister flew to the Indian capital over the weekend for bilateral talks, and to take part in a business delegation led by Auckland-based trade body India New Zealand Business Council. 

“While I hate to say it, I think we can learn a thing or two from our cousins across ‘The Ditch’ [Australia],” he said during an event at Confederation of Indian Industry in New Delhi on August 28, 2023. 

“Sustained engagement between prime ministers and ministers from both governments has been a critical part of the step change that Australia achieved in its relationship with India.” 

The minister pointed out “India is different, it requires a different approach”, and that “New Zealand, as the smaller partner, needs to put the effort in”.

He also met his Indian counterpart Piyush Goyal the same day, and later said Wellington and New Delhi have also agreed to “test new and innovative approaches” to building stronger economic relations.

“This meeting is part of a sustained effort by both governments to develop a broad-based relationship, building on the excellent meeting between the Prime Ministers of both the countries in Port Moresby in on May 22, 2023,” Connor said in a statement.

The minister laid out several next steps in bilateral relations, such as “possible innovative technical collaboration” in the field of agriculture and horticulture, including Kiwi fruit, pharmaceuticals, processing, storage and transportation, etc.

Business groups have for long pointed out New Zealand must prioritise its relations with India as the rest of the world, including Australia, ramps up efforts to bolster trade ties with the South Asian giant.

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.