New Zealand and India Trade Deal Negotiations: A Promising Start

Foreign Affairs Minister Winston Peters has hinted that New Zealand may soon announce the start of long-anticipated trade deal negotiations with India, sparking optimism among business leaders about advancing relations between the two nations.

Speaking at the India New Zealand Business Council’s annual address in Auckland, Peters expressed his confidence in strengthening ties with India, emphasizing the government’s commitment to fostering deeper connections with the world’s largest democracy.

A Brief History of Trade Negotiations

New Zealand began negotiating a trade agreement with India in 2010, under the leadership of former Prime Minister Sir John Key. However, talks stalled after five years, and progress has remained stagnant ever since.

“I think there’s a chance that we will be announcing the beginning of negotiations on that [trade deal] matter,” Peters said.

Recent Diplomatic Strides

Peters highlighted recent diplomatic strides, including his trip to India in March 2024 and New Zealand’s hosting of Indian President Droupadi Murmu in August 2024. These efforts have been welcomed by business leaders, who emphasize the need for tangible outcomes.

Business leaders welcomed these developments but emphasized the need for concrete results.

India New Zealand Business Council Comments

Bharat Chawla, chair of the India New Zealand Business Council, noted that while high-level political visits are promising, more action is needed. “What this government is doing is what we want, but we need more momentum,” he said.

“We want to set a short-term goal before aiming for a long-term goal of a free trade deal. We don’t want to wait another 10 years,” Chawla added.

Sunil Kaushal, general manager of the council, agreed that while there are good signals from both governments, more resources are needed to accelerate progress.

“New Zealand has come a long way, and there are good signals from both the New Zealand and Indian governments. He emphasized that challenges remained but urged the government to allocate more resources to drive progress forward.

Planned Prime Ministerial Visit

Peters also revealed plans to further solidify relations by confirming Prime Minister Christopher Luxon’s trip to India in the first quarter of 2025.

“We need to see a clear roadmap for how we’re going to achieve this goal,” Chawla said.

A Conclusion

While New Zealand and India trade deal negotiations have been on hold for years, recent diplomatic strides suggest that progress is being made. Business leaders are eager to see tangible outcomes from these efforts, and it remains to be seen whether the government can deliver on its promises. With the next step towards a potential free trade deal likely to be announced soon, one thing is certain – the future of New Zealand-India relations will be shaped by the success of these negotiations.