Prime Minister John Key spoke to the media frequently and at length throughout the four-day state visit. He touched upon the entire gamut of issues concerning the specifics of the visit, trade, the emerging FTA, New Zealand’s stand on international issues and much else. He also exclusively spoke with Indian Weekender Editor-in-Chief Dev Nadkarni during the last leg of visit on the RNZAF flight back to New Zealand from Mumbai. Here are excerpts from Mr Key’s interaction with the media as well as the exclusive interview on a wide range of topics.
On the visit:
There was a very clear signal from India’s Prime Minister Manmohan Singh, who invited me to come and made this a state visit. That’s very important to New Zealand. From New Zealand’s perspective, because of its growth rates and huge emerging middle class, India is an important market but from India’s perspective, too, New Zealand is increasingly important for it as well.
On what is in it for New Zealand:
India’s consistent growth rate of 8 to 9 per cent over the past several years has reduced poverty by 15 per cent in the past few years. The middle class is huge and is growing with greater disposable incomes. This brings in a range of opportunities both for New Zealand products and services and also for New Zealand to tap into India’s talented professionals in a number of fields in which New Zealand has good strengths but needs skilled persons. Also, India will spend some US$1.7 trillion on infrastructure in the next five years. That’s a staggering figure and just shows the scale of opportunity that exists when you align with its economy.
On what is in it for India:
Dr Singh is a world-renowned economist who recognises the issues of ensuring India’s food supply and keeping down food inflation while it emerges as a global superpower at the same time. In the New Zealand context this inflation is about 10%, in India it is more than double that and it is necessary to keep it down. This is where a country like New Zealand can come in with help in the areas of technology for better preservation of harvested food and for boosting productivity. We have had a good relationship with India for many years. As Dr Singh told me during the reception [at Rashtrapati Bhavan], we now need to take this to another level that brings benefits to the people of both countries.
On the ongoing progress on the FTA:
We’ve had four-five rounds of negotiations so far and there will be some more, probably another four. There’s always a lot of work to be done by officials behind the scenes and there’s tough negotiations but both countries realise the importance of having an FTA in place. [Commerce and Industry] Minister Anand Sharma is hopeful of completing negotiations by the first quarter of next year. It is good to work with a timetable like that. It shows keenness on the part of both countries to get on with it. Having said that, we will look at the quality of the FTA to be signed rather than be governed by any deadline or schedule. It’s important to have a quality FTA that will work for both countries than rushing through to produce just a document, held hostage by a timeline.
On possible sticking points and potential showstoppers:
We can’t discuss details of the negotiations through the media while they are in progress. But there will be issues that will need ironing out. Both countries are approaching the FTA in a positive manner and both recognise the mutual benefits of having a deal. There’s much that we have learnt from our negotiations with China that will stand us in good stead during our ongoing Indian negotiations but the scenarios are quite different.
On the big opportunities for New Zealand:
We see a huge market for our dairy industry. Though it's a sensitive issue, our value added dairy products are non-competing with India’s dairy industry. The other opportunity is in post harvest preservation and transportation, considering India has to throw away a significant quantity of its produce because it needs the infrastructure. New Zealand has great strengths and experience in these areas. Know-how to boost agricultural productivity is another area. Then there is ICT, engineering, renewable energy, forestry, tourism, education and filmmaking. In all these areas there has been activity. The FTA will help grow business in these sectors.
On New Zealand’s stand on international issues involving India:
During meetings such as these, countries keep politics aside. However, New Zealand will never do anything that compromises our values and what we stand for. But we also won’t let issues get in the way of trade negotiations between the two countries just because they have been around for a while.
On the nuclear issue, New Zealand’s position is well known and acknowledged in the world. We always make our point but we won’t belabour it. We welcome India’s participation in the nuclear security summit in Washington last year and recognise the positive steps it has taken on the issue in recent years. President Obama has also recognised this and the US has given some leeway to India as regards its nuclear programme.
There are a lot of things that we don’t agree with countries that we do business with but that shouldn’t get in the way of doing business and growing our economy.
On our support to its candidature for membership on the UN Security Council, we recognise the size and significance of India and its emergence on the global stage and if there is a reform of the Security Council – which might be several years away – it is hard to imagine it without a country like India.
There needs to be pragmatism and a twenty-first century perspective on dealing with these issues. It is important to see the big picture so New Zealand does not miss some great opportunities to boost the economy.
On throwing Bollywood and cricket into the mix:
Sport and culture can greatly strengthen ties between countries and we are seeing that happen. There is a lot in common between India and New Zealand because of past colonial ties. We share the same legal systems; we understand the language and have a common love of cricket. It’s been great having Stephen Fleming around – he is so popular in India. New Zealand also has had an increasing presence in Bollywood films. This has helped showcase our country as a tourist destination to India’s growing middle class that seeks new destinations to travel and study. Sport and culture can play big roles in cementing ties between countries. [During the visit, the Prime Minister announced sports scholarships for Indian students to study a range of sports subjects in New Zealand.]