Finance
As tensions between the United States and Iran threaten the global supply chain once more, Todd McClay, New Zealand’s Minister for Trade and Investment, announced on Friday that New Delhi and Wellington will create new communication linkages, as well as maritime routes between the two countries.
In an interview with IANS, McClay stated that “we would like peace to be there and issues to be worked out around the negotiating table” when the Middle East flares up again.
He added that a free trade agreement (FTA) provides more certainty.
“There are always challenges to supply chains and the ability to get resources. But what India and New Zealand have said is that we’re going to build those links between each other. I think you’ll see shipping routes firm up and increase between India and New Zealand,” McClay told IANS.
Bilateral trade between the two nations has been steadily increasing in recent years, and the FTA intends to strengthen the relationship and transform it into a more long-term strategic partnership.
Total trade rose from approximately $900 million in 2019-20 to $1.3 billion in 2024-25.
India’s exports increased dramatically from $379 million to $711 million, while imports from New Zealand increased gradually from $522 million to $587 million.
McClay also stated that flight New Zealand plans to create three offices in India to begin promoting flight connectivity.
“Air India and Air New Zealand have just asked for permission in New Zealand from our commerce regulator to be able to cooperate for flights. So, as the rest of the world creates some uncertainty, the free trade agreement allows India and New Zealand to cooperate even more to build reliance upon each other,” McClay told IANS.
The FTA, which was signed on April 27 of this year, eliminates duties on all of India’s exports to New Zealand while substantially reducing or eliminating tariffs on 95% of the country’s imports from New Zealand.
Source: IANS
