| India and New Zealand have initiated steps to ink a free trade agreement (FTA) but it could be a while before this becomes a reality, report zenews.com.
"We have agreed to a study on eventually concluding a FTA. This study will go into issues like how each side can benefit from such an agreement," New Zealand Trade Minister Phil Goff said after meeting the Indian Trade and Commerce Minister Kamal Nath.
"We should be able to launch this study by the end of the year. It will lay down the terms of reference for further negotiations. Based on this, we will proceed ahead," added Goff.
Geoff was in Delhi over the weekend on a two-day visit.
India currently has a trade imbalance with New Zealand , with exports of $250 million and imports of $355 million.
"Given our enormous commonalities of democracies and a common language, there is enormous potential for further growth. Our combined trade is only half-a-million dollars compared to $7 billion with China , with which we have very little in common," Goff pointed out.
Food and beverages, commodities like coal and timber and agricultural technologies, as also tourism, were the key areas in which the two countries could improve their interaction, the minister said.
Speaking about the need to reduce trade barriers, Goff pointed out that a bottle of wine that cost $10 in New Zealand attracted customs duties of between 100 and 560 percent in India.
This apart, New Delhi 's law relating to the import of agricultural and dairy products and also meats "are far above international standards and need to be lowered", the minister contended.
"Take apples. They attract 50 percent customs duty when we have two growing seasons and we are not in competition with your local produce. I think Indians are well entitled to our very delicious apples! Details at http://www.zeenews.com
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