The bridging tour

Leaving New Delhi with a series of signed documents, but the agreement to restart negotiations on a Free Trade Agreement (FTA) with India is the result that New Zealand Prime Minister Christopher Luxon is most satisfied with.

Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, March 17. (Source: X)

New Zealand governments, regardless of party, have long advocated for closer ties with India. In 2011, Wellington even launched a “New Zealand Inc. India” strategy to make India a core trade, economic and political partner for New Zealand.

However, at present, bilateral trade turnover is still only at a meager level of over 870 million USD/year. Although knowing that it can gain many benefits from the FTA, due to internal problems, India has not agreed to reduce tariffs on the dairy industry, a field that is New Zealand's strength. Therefore, since the two countries started negotiating the FTA, 20 years have passed and this goal is still on paper.

But now the New Zealand economy is facing many difficulties, inflation is rising. India is facing negative impacts from the new tariff policy of US President Donald Trump.

New Zealand Prime Minister Christopher Luxon speaks at the India-New Zealand Economic Forum on March 18 in New Delhi. (Source: X)

Compromise to sign FTA seems to be a win-win solution for both sides in the current complicated and volatile situation. While India can diversify its export markets and minimize the impact of new US tariff policies, New Zealand has the opportunity to access a market of nearly 1.5 billion people.

If this agreement is signed, it will be a major breakthrough in the economic relationship between India and New Zealand. Through trade, the two countries can boost their economies, create more jobs and increase the income of their people.

New Delhi and Wellington are “looking to build a new bridge” to come together and Mr. Christopher Luxon's visit has built the first bridge for that ambitious goal.

Source: https://baoquocte.vn/thu-tuong-new-zealand-tham-an-do-chuyen-cong-du-bac-cau-308231.html