India, NZ start FTA talks in July
India and New Zealand have agreed to start negotiations for a bilateral free trade agreement (FTA) in July.
The decision was taken at a meeting Indian Commerce and Industry Minister Kamal Nath had with visiting Trade Minister of New Zealand Tim Groser in New Delhi on Friday.
"The negotiations will begin in July," said Nath after the meeting.
Both the ministers said the report of the Joint Study Group (JSG) set up to examine the feasibility of FTA demonstrates considerable potential that exists to substantially develop the bilateral trade and economic relationship further and that this would be significantly enhanced by a bilateral free trade agreement.
Nath told Grose that India's exports to New Zealand stood at US$159 million and imports from New Zealand were US $336 million in fiscal 2007-08, taking the total trade to around US$0.5 billion.
In the current financial year, the bilateral trade has already reached US$394 million in the first seven months, registering 40 percent growth.
Major items of India's exports to New Zealand are gems and jewellery, medicines, textiles, iron and steel products, tyres and parts of aeroplanes and helicopters. Major items of New Zealand's exports are coal, wool, metal waste and scrap and raw skins and hides.
Speaking on the WTO Doha Round Negotiations, Nath emphasised India has been engaging constructively and actively with other member-countries for an early conclusion provided developed countries are willing to show necessary flexibility and added "it is expected that based on these negotiations, further revised texts would be brought out in March or April.
Foreign direct investment flows from New Zealand to India have been US$16.8 million, mainly in power, food processing industries and computer software/hardware.
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