New Zealand and India are to explore the prospects of a free trade pact while acknowledging there are "significant obstacles" ahead, New Zealand Trade Minister Phil Goff said Sunday. The announcement came following talks here with his Indian counterpart Kamal Nath.
"While achieving a free trade agreement with India would require us to overcome significant obstacles, agreement in principle to conduct a study into what such an agreement would mean for both of our countries would be a good start," Goff said.
Trade between the two counties is small but growing, with New Zealand exports to India reaching 355 million dollars (262 million US) in the year to February 2007.
"That trade still only represents a fraction of its potential," Goff said.
"New Zealand-India two-way trade at less than 650 million dollars compares with nearly seven billion dollars in our two-way trade with China." Goff said he had raised his concerns with Nath about significant barriers New Zealand goods faced entering India. "Tariffs on key New Zealand food and beverage items are high and food safety controls, which exceed international standards, can prevent trade in areas such as dairy and meat." Progress on a study is expected to be made at a joint trade commission meeting between the two countries likely to be held in September.