The bridging tour

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

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

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

However, currently, bilateral trade volume remains sluggish at just over $870 million per year. Despite knowing the potential benefits of an FTA, India is unwilling to reduce tariffs on dairy products, a sector in which New Zealand has a strong advantage, due to internal issues. Therefore, 20 years have passed since the two countries began FTA negotiations, and this goal remains only on paper.

But now, the New Zealand economy is facing many difficulties, with high inflation. India is facing negative impacts from the new tariff policies 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)

A compromise to sign an FTA appears to be a win-win solution for both sides in the current complex and volatile situation. While India can diversify its export markets and mitigate the impact of new US tariff policies, New Zealand gains access to 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 people's incomes.

New Delhi and Wellington are "looking to build a new bridge" to connect with each other, and Christopher Luxon's visit has laid the first step toward that ambitious goal.

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