Modi and Luxon Strengthen Trade and Investment Links
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Synopsis
On March 17, Prime Ministers Modi and Luxon agreed to enhance India-New Zealand trade and investment ties, aiming for sustainable economic growth and tapping into untapped potential. Their discussions included free trade agreement negotiations, digital payments cooperation, and tourism enhancements.
Key Takeaways
- Strengthened trade and investment between India and New Zealand.
- Initiation of free trade agreement negotiations.
- Cooperation in digital payments sector discussed.
- New partnerships in horticulture and forestry.
- Increased tourism flows and direct flights encouraged.
New Delhi, March 17 (NationPress) Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon have reached a consensus to strengthen the trade and investment ties between their nations, aiming to unlock the untapped potential and foster inclusive and sustainable economic growth.
A joint statement released following their meeting indicated that the leaders acknowledged the ongoing robust trade and investment exchanges between India and New Zealand, urging for enhanced two-way investments that reflect the current strong momentum in bilateral collaboration.
The Prime Ministers also expressed their support for the initiation of free trade agreement (FTA) negotiations aimed at crafting a balanced, ambitious, comprehensive, and mutually advantageous trade pact to facilitate deeper economic integration.
It was agreed that a comprehensive trade agreement presents a significant opportunity to boost trade and economic collaboration. By utilizing each country's strengths, addressing mutual concerns, and overcoming challenges, a bilateral trade agreement can encourage mutually beneficial growth in trade and investment, ensuring equitable advantages and complementarities for both parties. The leaders committed to appointing senior representatives to guide these negotiations toward a resolution as swiftly as feasible, as stated in the document.
In the context of FTA negotiations, discussions on early implementation of cooperation in the digital payments sector were agreed upon by the leaders.
They urged businesses from both nations to strengthen connections and investigate emerging economic and investment opportunities to build on the complementarities existing between the two economies.
The leaders also acknowledged the signing of the Authorised Economic Operators Mutual Recognition Arrangement (AEO-MRA) under the Customs Cooperation Arrangement (CCA) signed in 2024, which is set to facilitate smoother movement of goods between the two nations by allowing trusted traders through close collaboration between customs authorities, thus enhancing bilateral trade.
Furthermore, new partnerships in horticulture and forestry were welcomed, including the signing of a Memorandum of Cooperation on Horticulture which aims to bolster bilateral collaboration through knowledge and research exchanges, as well as the development of post-harvest and marketing infrastructure; and a Letter of Intent on Forestry Cooperation to foster policy dialogues and technical exchanges, according to the joint statement.
The leaders also recognized the positive impact of tourism in stimulating economic growth, enhancing business connections, and fostering greater understanding between the peoples of both countries.
They welcomed the increasing tourist flows between India and New Zealand and appreciated the updates to the India-New Zealand Air Services Agreement, agreeing to motivate their airlines to initiate direct (non-stop) flight operations between the two nations, as added in the statement.
The New Zealand Prime Minister is on an official visit to India from March 16-20, during which he will also travel to Mumbai and is accompanied by cabinet members including Todd McClay, Minister for Trade and Investment, Agriculture, and Forestry, Louise Upston, Minister for Tourism and Hospitality, Mark Mitchell, Minister for Ethnic Communities, and Sport and Recreation.
