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India, New Zealand to study potential for free trade pact

Melbourne: India and New Zealand have agreed to study the potential for a free trade agreement (FTA) and what it could mean, said New Zealand Trade Minister Phil Goff on Sunday after talks with his Indian counterpart Kamal Nath in Wellington.

Obstacles

``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,'' Mr. Goff was quoted as saying by the media here.

Trade between the two countries is small, but growing fast. ``New Zealand-India two-way trade is at less than $650 million, compares with nearly $7 billion in our two-way trade with China,'' Mr. Goff said.

He had raised concerns about significant barriers to New Zealand goods entering the Indian market.

``In my discussions with Mr. Kamal Nath, I also raised our specific concerns about tariff and non-tariff barriers,'' he said.

``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,'' he said.

Direct air service

Mr. Goff said education and tourism interests in New Zealand were expanding in India and there was potential for a direct air service between Auckland and Mumbai in a few years. ``New Zealand has much in common with India, including language, political and legal institutions and a long-standing and warm relationship, which should make trade easier,'' he said. — PTI

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