New Delhi, April 28 New Zealand Trade and Investment Minister Todd McClay has said that the India-New Zealand FTA serves as a beacon a bright light that shows how negotiating high-quality agreements and honouring commitments can help economies grow, which ultimately benefits our citizens.
McClay, in an exclusive interview to IANS, said that the benefit of the proposed deal is fruitful for commoners of both countries.
Here are the full excerpts of the interview:
IANS: When will the India–New Zealand FTA be fully operationalised?
Todd McClay: We will put it before our Parliament tomorrow. We will start very, very quickly. We hope to have it enter into force before the end of the year and then it will be fully implemented over about a seven-year period.
On day one, all exports from India to New Zealand will have a zero tariff rate. For many of our exports, over 50 per cent will drop to zero tariffs on day one, while in other areas it will be implemented over the next seven years.
Over the next few months, we will all be working very hard. We want the benefits of the deal to be available to all citizens of India and New Zealand.
IANS: How is the FTA going to help economic growth across the spectrum, especially amid ongoing global uncertainty?
Todd McClay: A free trade agreement creates a common set of rights and obligations that businesses can rely upon. Today in India, Minister Piyush Goyal and I, on behalf of our governments, signed a public commitment to create rules and honour them.
This gives business communities confidence that if they invest time and effort into this trading relationship, they will have certainty. This is very important because the global trade environment is quite uncertain at the moment.
This agreement serves as a beacon a bright light that shows how negotiating high-quality agreements and honouring commitments can help economies grow, which ultimately benefits our citizens.
IANS: Which key sectors are set to benefit?
Todd McClay: Across the board. For Indian exporters to New Zealand, there are very few restrictions and a zero tariff rate. India produces a wide range of goods from agricultural equipment to chemicals, fertilizers, and possibly oil products.
Even more importantly, many manufactured goods from India can find their way into New Zealand. New Zealand consumers are selective they value both competition and choice so I believe India will perform very well.
From New Zealand’s side, there are many complementary sectors. New Zealand produces some of the highest-quality and safest food in the world.
In areas where India relies on imports such as lamb, seafood, and certain horticultural products you will see increased supply.
For Indian consumers, this means more choice, potentially better prices, and a strong guarantee of quality. If it comes from New Zealand, it is safe, delicious, and enjoyable
IANS: Do you think Prime Minister Modi’s progressive approach and bold thinking helped achieve this FTA? How do you rate him as India’s Prime Minister?
Todd McClay: There is no question that the strong leadership of Prime Minister Modi and Prime Minister Luxon helped Minister Goyal and me work very hard to achieve this deal in almost record time.
Prime Minister Modi and Prime Minister Luxon have developed a friendly relationship through meetings around the world.
Last year, Prime Minister Luxon visited India with the largest trade delegation ever brought by a New Zealand Prime Minister to any country.
I have great respect for everything Prime Minister Modi has achieved and for his significant leadership. It was an honour to meet him and speak with him when we concluded the agreement.
IANS: How can India and New Zealand best leverage this FTA to achieve their goals?
Todd McClay: Now, the business communities need to step up. The governments have done most of the negotiation work, though we will continue to support and facilitate.
I will be bringing more trade missions from New Zealand to India to build connections, and Indian businesses should also visit New Zealand. Trade missions can be organised on both sides.
Ultimately, businesses must take this agreement and actively look for opportunities. I believe those opportunities will be significant.
IANS: Prime Minister Modi may visit New Zealand. What would you say about it?
He is very welcome. It would be a great honour to host him. We are two of the world’s true democracies India being the largest and New Zealand among the earliest.
This year also marks 70 years of sporting cooperation between India and New Zealand, which deserves recognition.
There was also an important cricket match recently the T20 final between India and New Zealand which India won.
To Prime Minister Modi, you are welcome in New Zealand. Bring your cricket team we would love another match.
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