New Zealand to Pursue India Trade Deal After Years of Stalemate

Foreign Affairs Minister Winston Peters has hinted that New Zealand may soon announce the start of long-anticipated trade deal negotiations with India, marking a potential shift in the country’s efforts to strengthen ties with the world’s largest democracy.

Peters spoke at the India New Zealand Business Council’s annual address in Auckland, expressing optimism about advancing relations between the two nations. “I think there’s a chance that we will be announcing the beginning of negotiations on that [trade deal] matter,” he said.

A Long-Standing Partnership

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

Despite this, Peters acknowledged the need for greater effort to strengthen ties with India, emphasising the government’s commitment to fostering deeper connections with the country.

Diplomatic Efforts

The foreign affairs minister 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.

Trade Minister Todd McClay has also been active, visiting India three times this year and meeting his Indian counterpart, Piyush Goyal, on three other occasions abroad.

A Call for Action

Business leaders welcomed these developments but emphasised the need for tangible outcomes. Bharat Chawla, chair of the India New Zealand Business Council, said: “What this government is doing is what we want, but we need more momentum.”

“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.

Accelerating Progress

Sunil Kaushal, general manager of the council, agreed that while the high-level political visits are promising, more action is needed.

“New Zealand has come a long way, and there are good signals from both the New Zealand and Indian governments,” Kaushal said.

Next Steps

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

In conclusion, New Zealand’s efforts to pursue a trade deal with India mark an important step forward in strengthening ties with the world’s largest democracy. While progress has been slow in the past, recent diplomatic strides and business leader optimism suggest that momentum is building towards a potential breakthrough.