Auckland: As the US-Iran tensions threaten the global supply chain once again, New Zealand’s Minister for Trade and Investment, Todd McClay, said on Friday that New Delhi and Wellington are going to build new connectivity links, along with shipping routes being firmed up between the two nations.
In an interaction with IANS, McClay said, as we see a flare-up in the Middle East again, “we would like peace to be there and issues to be worked out around the negotiating table”.
He further stated that a free trade agreement (FTA) creates greater 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 countries has been growing steadily in recent years, and the FTA aims to boost it further and turn their relationship into a stronger and longer-term strategic partnership.
Total trade increased from about $900 million in 2019-20 to $1.3 billion in 2024-25.
India’s exports rose sharply from $379 million to $711 million, while imports from New Zealand grew more moderately from $522 million to $587 million.
McClay further informed that Air New Zealand is going to open three offices in India to start promoting air links.
“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, signed on April 27 this year, removes tariffs on 100 per cent of India’s exports to New Zealand, and either sharply reduces or removes tariffs on 95 per cent of the country’s imports from New Zealand.
(IANS)
