New Zealand’s Free Trade Agreement with India: The tasks ahead
New Zealand’s foreign policy is based on the idea of independence and this can be seen ingrained in the foreign policy of both National and Labour governments. But when it comes to situations like the Iraq war; Labour followed the liberal internationalist paradigm preferring idealist multilateral actions with the backing of UN as the only acceptable international response.
On the other hand the National party believes in realism and considers US action through coalition of the willing as an apt response to tyrants and evil regimes. Even though New Zealand has dependence in areas like intelligence and defence with the US, UK and Australian counterparts, it is closer to European perspectives of international relations; has freed it from the past towing of traditional allies and committing to foreign policy blunders like war in Vietnam, atrocities in Indonesia and Apartheid in South Africa.
Today New Zealand’s foreign policy is driven by trade, security, aid and human rights. New Zealand as a state is realising its role as a provider for its population, both in terms of security and welfare. Issues like human rights concerns are voiced in non self destructible manner. New Zealand-China free trade agreement is the classic example.
India
‘I have travelled across the length and breadth of India and I have not seen one person who is a beggar, who is a thief. Such wealth I have seen in this country, such high moral values, people of such calibre, that I do not think we would ever conquer this country, unless we break the very backbone of this nation, which is her spiritual and cultural heritage. And, therefore, I propose that we replace her old and ancient education system, her culture, for if the Indians think that all that is foreign and English is good and greater than their own, they will lose their self esteem, their native culture and they will become what we want them, a truly dominated nation’ – Lord Macaulay’s Address to the British parliament, 2 Feb, 1835
The English successfully broke India’s backbone through their rule for about a century and when India won freedom in 1947, it was a nation with no self esteem. Mahatma Gandhi did start the process of re-establishing India but unfortunately his exit in 1948, left the country in the hands of those who never accepted to shoulder the responsibility towards its masses. After more than 60 years of self rule, it is still foreign to say, “Political leaders bear a heavy responsibility for the security and welfare of their country and its people.”
Like many developing world countries the ruling elite in India have been foreign educated, pro-west individuals who created a strange type of governance that has promoted self interest, nepotism and has severely affected the affairs of the country. The administration and justice systems are still evolving, as the ordinary citizen is not in a position to lay claim to the benefits of the so-called economic boom. The fact that out of 62 years of ‘self rule’, a single ‘dynasty’ has ruled India for more than 40 years speaks for itself about the nature of democracy.
The world's largest democracy and second most populous country emerged as a major power in the 1990s. It is militarily strong, has a big cultural influence and a fast-growing and powerful economy. A nuclear weapons state, it carried out tests in the 1970s and again in the 1990s in defiance of world opinion.
However, India is still tackling huge social, economic and environmental problems.
Majority population of Hindus is extremely tolerant and accept misrule almost as destiny. Passive religion of Hinduism has been a blessing in a way as it has avoided fundamentalism to take roots in India and practice of pluralism and coexistence has been a positive factor for emancipation of masses.
The number of English speaking middle class population is growing and India has the largest pool of computer software experts.
Indian investment in lower tariffs by removing traditionally imposed tariffs and other restrictions (to protect its farm-based domestic economy); has reduced controls on foreign trade and investment. Averaging 12.5% on non-agricultural items in 2006, Indian tariffs are now competitive with ASEAN with whom India has more than doubled its trade in last few years.
In 2005, the Indian economy was 20% agriculture, 19% industries and 61% services. To give foreigners unfettered access to India's vast and growing market of 1.1 billion consumers, more reforms are required. India is already progressing on reduction or removal of trade barriers with China (now India's second-largest trade partner - US$20 billion in 2006, after the United States) for regional trading arrangement.
Indian Exports and Imports have reached US$400 billion mark, which verify India’s importance in global trade but misrule is restricting the benefits to percolate down to the masses.
India has some brightest achievements to offer but its persistent social inequities and economic and political corruption is a matter of serious concern.
India – NZ: Mutual Importance
India’s aspiration to secure a seat as a permanent member of UN Security Council was openly opposed by New Zealand on the pretext of ‘New Zealand does not support the ‘Veto’ system in UN. But at the same time NZ supported Japan’s aspiration for the same position.
India-US nuclear deal was being blocked by a few NSG (Nuclear Safety Group) states, including New Zealand. Later under US pressure, NZ accepted to allow the deal to proceed.
India is not ready to open market for items like dairy and meat products (main New Zealand export items) and India does not have machinery and technology (main imports of New Zealand) for New Zealand to get enticed.
After formation of the new government after elections in New Delhi last year, the committee to take FTA forward is yet to be announced by India. Also it took many months for India to depute new high commissioner to New Zealand.
New Zealand is not paying as much attention to India as it should, says Trade Minister Tim Groser.
NZTE’s regional director for South and Southeast Asia, Alan Koziarski, says learning more about the cultural and market requirements in India as well as adapting to often complex Indian business regulations is essential if New Zealand companies are to succeed there.
Path Ahead
India is a country where the silver lining is that there is a slow progress towards change and it may not be a long time before India will awaken to its real potential. New Zealand is positioning itself at the right place to be seen as a sincere partner. It may be prudent for New Zealand to take steps similar to those that were taken to get China, agree to FTA agreement and these actions could be:-
• Identify considerations for highlighting economies are complimentary
• Advocate India’s rightful role at the international scene
• New Zealand investment in India needs to increase
• Ease entry of work force from India
• Increase interchange by visits to India by government and non government officials and extend invitations for reciprocal visits.
New Zealand has proved its mantle in international arena. Be it formation of United Nations or championing the Human Rights as universal, inherent and inalienable for all mankind; New Zealand has been a valuable architect of modern world order. More than a billion people of China are on track and again role of New Zealand is noteworthy.
It is high time the world realises that another billion odd people of India need positive engagement. Formation of G20 is a positive step and New Zealand as a model country can take further lead from here.
--
Veer Khar is General Secretary, The New Zealand Indian Central Association (NZICA)
New Zealand’s foreign policy is based on the idea of independence and this can be seen ingrained in the foreign policy of both National and Labour governments. But when it comes to situations like the Iraq war; Labour followed the liberal internationalist paradigm preferring idealist multilateral...
New Zealand’s foreign policy is based on the idea of independence and this can be seen ingrained in the foreign policy of both National and Labour governments. But when it comes to situations like the Iraq war; Labour followed the liberal internationalist paradigm preferring idealist multilateral actions with the backing of UN as the only acceptable international response.
On the other hand the National party believes in realism and considers US action through coalition of the willing as an apt response to tyrants and evil regimes. Even though New Zealand has dependence in areas like intelligence and defence with the US, UK and Australian counterparts, it is closer to European perspectives of international relations; has freed it from the past towing of traditional allies and committing to foreign policy blunders like war in Vietnam, atrocities in Indonesia and Apartheid in South Africa.
Today New Zealand’s foreign policy is driven by trade, security, aid and human rights. New Zealand as a state is realising its role as a provider for its population, both in terms of security and welfare. Issues like human rights concerns are voiced in non self destructible manner. New Zealand-China free trade agreement is the classic example.
India
‘I have travelled across the length and breadth of India and I have not seen one person who is a beggar, who is a thief. Such wealth I have seen in this country, such high moral values, people of such calibre, that I do not think we would ever conquer this country, unless we break the very backbone of this nation, which is her spiritual and cultural heritage. And, therefore, I propose that we replace her old and ancient education system, her culture, for if the Indians think that all that is foreign and English is good and greater than their own, they will lose their self esteem, their native culture and they will become what we want them, a truly dominated nation’ – Lord Macaulay’s Address to the British parliament, 2 Feb, 1835
The English successfully broke India’s backbone through their rule for about a century and when India won freedom in 1947, it was a nation with no self esteem. Mahatma Gandhi did start the process of re-establishing India but unfortunately his exit in 1948, left the country in the hands of those who never accepted to shoulder the responsibility towards its masses. After more than 60 years of self rule, it is still foreign to say, “Political leaders bear a heavy responsibility for the security and welfare of their country and its people.”
Like many developing world countries the ruling elite in India have been foreign educated, pro-west individuals who created a strange type of governance that has promoted self interest, nepotism and has severely affected the affairs of the country. The administration and justice systems are still evolving, as the ordinary citizen is not in a position to lay claim to the benefits of the so-called economic boom. The fact that out of 62 years of ‘self rule’, a single ‘dynasty’ has ruled India for more than 40 years speaks for itself about the nature of democracy.
The world's largest democracy and second most populous country emerged as a major power in the 1990s. It is militarily strong, has a big cultural influence and a fast-growing and powerful economy. A nuclear weapons state, it carried out tests in the 1970s and again in the 1990s in defiance of world opinion.
However, India is still tackling huge social, economic and environmental problems.
Majority population of Hindus is extremely tolerant and accept misrule almost as destiny. Passive religion of Hinduism has been a blessing in a way as it has avoided fundamentalism to take roots in India and practice of pluralism and coexistence has been a positive factor for emancipation of masses.
The number of English speaking middle class population is growing and India has the largest pool of computer software experts.
Indian investment in lower tariffs by removing traditionally imposed tariffs and other restrictions (to protect its farm-based domestic economy); has reduced controls on foreign trade and investment. Averaging 12.5% on non-agricultural items in 2006, Indian tariffs are now competitive with ASEAN with whom India has more than doubled its trade in last few years.
In 2005, the Indian economy was 20% agriculture, 19% industries and 61% services. To give foreigners unfettered access to India's vast and growing market of 1.1 billion consumers, more reforms are required. India is already progressing on reduction or removal of trade barriers with China (now India's second-largest trade partner - US$20 billion in 2006, after the United States) for regional trading arrangement.
Indian Exports and Imports have reached US$400 billion mark, which verify India’s importance in global trade but misrule is restricting the benefits to percolate down to the masses.
India has some brightest achievements to offer but its persistent social inequities and economic and political corruption is a matter of serious concern.
India – NZ: Mutual Importance
India’s aspiration to secure a seat as a permanent member of UN Security Council was openly opposed by New Zealand on the pretext of ‘New Zealand does not support the ‘Veto’ system in UN. But at the same time NZ supported Japan’s aspiration for the same position.
India-US nuclear deal was being blocked by a few NSG (Nuclear Safety Group) states, including New Zealand. Later under US pressure, NZ accepted to allow the deal to proceed.
India is not ready to open market for items like dairy and meat products (main New Zealand export items) and India does not have machinery and technology (main imports of New Zealand) for New Zealand to get enticed.
After formation of the new government after elections in New Delhi last year, the committee to take FTA forward is yet to be announced by India. Also it took many months for India to depute new high commissioner to New Zealand.
New Zealand is not paying as much attention to India as it should, says Trade Minister Tim Groser.
NZTE’s regional director for South and Southeast Asia, Alan Koziarski, says learning more about the cultural and market requirements in India as well as adapting to often complex Indian business regulations is essential if New Zealand companies are to succeed there.
Path Ahead
India is a country where the silver lining is that there is a slow progress towards change and it may not be a long time before India will awaken to its real potential. New Zealand is positioning itself at the right place to be seen as a sincere partner. It may be prudent for New Zealand to take steps similar to those that were taken to get China, agree to FTA agreement and these actions could be:-
• Identify considerations for highlighting economies are complimentary
• Advocate India’s rightful role at the international scene
• New Zealand investment in India needs to increase
• Ease entry of work force from India
• Increase interchange by visits to India by government and non government officials and extend invitations for reciprocal visits.
New Zealand has proved its mantle in international arena. Be it formation of United Nations or championing the Human Rights as universal, inherent and inalienable for all mankind; New Zealand has been a valuable architect of modern world order. More than a billion people of China are on track and again role of New Zealand is noteworthy.
It is high time the world realises that another billion odd people of India need positive engagement. Formation of G20 is a positive step and New Zealand as a model country can take further lead from here.
--
Veer Khar is General Secretary, The New Zealand Indian Central Association (NZICA)
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