New Zealand bolsters ties with India in shift away from China

NEW DELHI: While New Zealand considered China as a major economic partner for the past several decades, the signing of the FTA with India, followed by the visit of Prime Minister Narendra Modi on July 11, suggests a new shift by New Zealand to expand and balance its economic and security relationships amid growing militarization and politicization in the Pacific, according to an article in The Diplomat.

The Indian government has said the FTA is a forward-looking partnership that promises to give its labour-intensive sectors, such as textiles and leather, additional economic opportunities. The New Zealand government stated that the FTA provides new and expanded business opportunities.

New Zealand Trade Minister Todd McClay said that the new agreement would eliminate or reduce tariffs on 95 percent of exports, such as kiwifruit, apples, meat, wool, coal, and forestry and opens the door to India’s rapidly expanding middle class. The article highlights that the new FTA is a recognition that India can become an important and growing international market that provides significant opportunities for New Zealand services and products. India has overtaken Japan as the world’s fourth largest economy and its economy is expected to grow over 6 percent in the next few years. To date, there has been limited interest and opportunities for New Zealand businesses on the subcontinent and the FTA is an effort to change that. (IANS)

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