FREE TRADE
WHAT'S HAPPENED
Talks about a free trade agreement (FTA) between India and
New Zealand stalled in 2016 as focus turned to the TPP.
Former prime minister Sir John
Key, who visited India in that
year, reported that the Indian
Government was keen to progress
relatively rapidly a comprehensive
agreement. Despite that direction,
progress has been slow, with one diplomatic
official saying the agreement is
on “life support,” and citing dairy as the
sticking point. Even New Zealand’s high
commissioner in New Delhi, Joanna
Kempkers, says negotiations are on a
“slow boil.” The benefits for India will
be access to a small but wealthy country
that has adopted technology suitable
as a ‘test bed’ for Indian systems.
For us, access to a 1.2 billion population
means Kiwi businesses will need only
1% access for good market sales. “If
New Zealand was to send every single
drop of dairy exports to India, forget
about sending anything to the States or
China or anywhere else where we sell
a lot, if we sent everything to India we
would still only be able to meet 10%
of their consumption, so we’re never
going to be a threat but we could help
them upscale production,” Kempkers
says. It is likely that the RCEP trade
deal involving ten Southeast Asian
countries and Australia, China, India,
Japan, South Korea, and New Zealand
will be signed in November this year.
Officials say when that happens, New
16 MARCH 2018
Zealand must build trust with India for
FTA talks to begin again. So what are
those involved in New Zealand-India
trade doing already to grow that
relationship, and why does the
India New Zealand Business
Council deserve a pat on the
back? NZ FoodTechnology
takes a look.
India is a very large and attractive destination for
companies intending to expand their markets internationally,
and businesses have the option of
entering the Indian market either with or without
direct investment, TMF Group company secretary
Siddhartha Sharma says.
“There are a number of very flexible structures
that can be used, such as branch office or
representative office right through to incorporating
a private or public company, and this will
depend on the business’s operations and vision,”
Sharma - an experienced trader - says. “Recent
government moves to put more of the compliance
processes online and provide a fast-track
route to incorporation have lessened historical
complexities, but it is crucial to have the right
service provider to assist you with your Indian
set up and operations.”
INDIA TOP TIP