Modi, Luxon Agree to Bolster India-New Zealand Trade, Investment Ties

NEW DELHI:
Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon on Monday agreed to enhance the trade and investment relationship between the two countries, to realise the untapped potential and contribute to inclusive and sustainable economic growth.

According to a joint statement issued after the meeting here, “the two leaders welcomed the sustained trade and investment flows between India and New Zealand and called for greater two-way investment, reflective of the ongoing strong momentum in bilateral cooperation.”

The Prime Ministers welcomed the launch of free trade agreement (FTA) negotiations for a balanced, ambitious, comprehensive, and mutually beneficial trade agreement to achieve deeper economic integration.

The leaders agreed that a comprehensive trade agreement offers a significant opportunity to enhance trade and economic cooperation.

By leveraging each country’s strengths, addressing their respective concerns, and tackling challenges, a bilateral trade agreement can foster mutually beneficial trade and investment growth, ensuring equitable gains and complementarities for both sides. The Leaders committed to designate senior representatives to steer these negotiations to resolution as soon as reasonably possible, the statement said.

Within the context of FTA negotiations, the leaders agreed to discussions between respective authorities on both sides to explore early implementation of cooperation in the digital payments sector.

They encouraged businesses on both sides to cultivate links; explore emerging economic and investment opportunities to build upon the complementarities of the two economies.

The two leaders also welcomed the signing of the Authorised Economic Operators Mutual Recognition Arrangement (AEO-MRA) under the aegis of the Customs Cooperation Arrangement (CCA) signed in 2024, which would facilitate easier movement of goods between the two countries by respective trusted traders through close cooperation between customs authorities, thereby boosting bilateral trade.

The leaders welcomed new cooperation on horticulture and forestry, including the signing of the Memorandum of Cooperation on Horticulture which would enhance bilateral cooperation by promoting knowledge and research exchanges, development of post-harvest and marketing infrastructure; and the signing of a Letter of Intent on Forestry Cooperation that encourages policy dialogues and technical exchanges, according to the joint statement.

The leaders also recognised the positive role played by tourism in generating economic growth, increasing business engagements and generating greater understanding between people of the two countries.

They welcomed the growing flows of tourists between India and New Zealand and also appreciated the update to the India-New Zealand Air Services Agreement and agreed to encourage their carriers for commencement of direct (non-stop) flight operations between the two countries, the statement added.

The New Zealand Prime Minister is on an official visit to India from March 16-20. He will also visit Mumbai and is accompanied by his cabinet colleagues 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.