00:00One question is related to the milestone between India and New Zealand and of course the FTA.
00:08Talking about that in the post on October 20th, what changes do you expect from T1?
00:16If you can tell us your views on that.
00:18Well thank you very much and it's a great opportunity to speak about the FTA, I appreciate it.
00:23I think the first thing I would just say is the basics, that New Zealand and India have ratified the
00:31free trade agreement
00:32and our two countries have reached agreement that the entry into force of the agreement will take place on 20th
00:41of October.
00:44For New Zealand we see this agreement as being ambitious, balanced,
00:52and we see it as a once in a generation opportunity, that's going to deliver real benefits to both countries.
00:59So we're excited about it.
01:00I would say as well that it's one chapter in a relationship which is deepening by the day.
01:08And to give some examples of how the relationship is getting stronger,
01:15we've seen a great deal of high level contacts take place between our countries.
01:21We've had prime ministerial visits both ways.
01:24We were deeply honoured to have Prime Minister Modi visit down to New Zealand recently.
01:28We have seen the relationship elevated to a strategic partnership.
01:33And in recent years we've also seen our two countries conclude a wide range of memorandums of understanding
01:40and cooperation in many areas of bilateral ties.
01:44The FTA is a significant part of that.
01:47Coming to your question about gains for our two countries and what we can expect.
01:55Well, on day one for India, all Indian exports into New Zealand will enter without paying duty.
02:05It will be duty free.
02:07So that's a significant change and opportunity that is available for Indian exporters.
02:14Of course, it's for Indian exporters to take up their opportunities.
02:18The conditions under which they can enter New Zealand have improved.
02:22And it will be for them to take those opportunities up.
02:26But there's more benefits, I think, for consumers.
02:29For Indian consumers, we hope that through this trade agreement,
02:33we'll see Indian consumers really start to enjoy products like New Zealand kiwifruit,
02:38New Zealand apples, New Zealand wine.
02:43Benefits also for different sectors in India, we think.
02:48Part of the agreement is that we will create opportunities for cooperation
02:53and collaboration between our different sectors,
02:57so in agriculture areas, in horticulture areas.
03:00And we think that there's going to be real opportunity for our two countries to develop up
03:06and share knowledge and information through those collaborations.
03:11And finally, just in terms of the benefits for India,
03:15I think there's opportunities for deepened investment.
03:17And I think through the agreement, there will be more opportunities for people flows
03:23between our two countries.
03:25And finally, just let me say, for New Zealand,
03:27we see it as significant and substantive as well.
03:29So from day one, and that's what you were asking about,
03:32from day one, more than 50%, about 57% of New Zealand's current exports into India
03:39will enter duty-free.
03:40And by the time the agreement is fully implemented,
03:43that percentage will rise up to something like 82%.
03:47And additional to that, there will be significant reductions in other tariff lines as well.
03:53We'll also see products coming here under quota arrangements.
03:58So for New Zealand, there's real opportunity,
04:01and we see the agreement as giving us an opportunity to really move into the world's largest
04:08and one of the world's fastest-growing markets.
04:12Excellency, talking about one more number is the $20 billion investment commitment for New Zealand.
04:20When does the money start flowing, and where do you think are the potential areas?
04:25If you can tell us about that.
04:27Well, I think, thank you.
04:30New Zealand, through the agreement, has given a commitment to promote private sector investment into India.
04:38And I think that commitment spans over a 15-year period.
04:44And I think we are spending now, we will take time to work out how we implement that commitment.
04:52But I would also say that we want to spend a lot of time together with India,
04:56focusing on how we can increase the investment both ways.
04:59And in that regard, one of the things that I would want to highlight as being quite special from this
05:03arrangement
05:04is that India will be setting up a New Zealand investment desk,
05:08which will be supporting New Zealand investors and exporters to assist them in the market.
05:14Talking about doubling of the trade,
05:18the target of doubling the trade between India and New Zealand by 2030.
05:25Which sectors will drive this target, according to you, Excellency?
05:29Well, I think the first thing to say is that it's right that our country should set ambitious targets,
05:37particularly in economic and trade area.
05:40And I think there's every reason for us to be optimistic about arriving at that target.
05:47Already, even in advance of the trade agreement coming into force,
05:53the trends are showing increased interest and increased focus on bilateral economic ties between India and New Zealand.
06:01The numbers seem to be tracking well.
06:04I think the other thing to say is that the agreement is going to create new opportunities.
06:10So, to give one example, we will be looking for ways in which our two countries can cooperate
06:17and collaborate in areas like agriculture and horticulture,
06:22and that may generate up some new opportunities for the expansion of the trade ties between our two countries.
06:33Now, talking about the new strategic partnership, Excellency,
06:36what are the first concrete deliverables, according to you, under this new strategic partnership?
06:42Well, I think, because this is a moment that we're focused on the FTA just earlier in recent days,
06:50we've seen the announcement of the date for entry into force of the agreement.
06:54I think the first thing I would want to say is that that's going to be a significant first achievement
06:59while we are operating under a strategic partnership.
07:04The partnership ranges across a wide range of the elements of a bilateral relationship.
07:11It's not only trade and economic.
07:14It's defence and security.
07:16It's people linkages.
07:17It's high-level contacts.
07:19It's also talking about contacts in culture, in people, and in sports.
07:26And I think we are progressing the relationship in all of those areas.
07:32But right now, to answer your question, I think I would have to say that the big moment upon us
07:37is the entry into force of the FTA.
07:39This is going to be to the last question, Excellency.
07:41What should we expect next on direct connectivity, education, and people-to-people ties?
07:47What would be the target for you then?
07:49Well, thank you.
07:49I think on direct connectivity, we are always hopeful that there will be direct flights
07:58established between India and New Zealand.
08:01And I think our political leaderships have signalled that hope as well.
08:07In terms of education, I think the first thing I'd want to say there is that there are existing
08:14deep connections between India and New Zealand in the education space.
08:19Traditionally, that's included the students from India going down to study in New Zealand
08:25institutions.
08:26But increasingly, I think New Zealand education institutions are ambitious to try to establish
08:35collaborations with Indian institutions, to set up research collaborations with India.
08:42And to explore ways in which the education relationship can be further heightened.
08:51In terms of mobility, well, the agreement provides opportunities for skilled professionals and for
09:01Indians operating in iconic work sectors like yoga and cooking and music to be able to
09:11come to come to New Zealand to work temporarily.
09:15As well as that, we are setting up or establishing a working holiday scheme for young Indians.
09:23And these things will create strengthening of people linkages.
09:30But fundamentally, I would also say that the agreement itself will generate more activity between
09:39our two countries.
09:40More activity means more people linkages and more opportunities for our two countries to grow together.
