India Pursues New Free Trade Agreements With New Zealand And South Africa

ENA Global 2024-06-27 17:05:24 New Delhi, Jun 27 (KNN) India is poised to initiate free trade agreement (FTA) discussions with New Zealand and South Africa, according to government officials familiar with the matter. This strategic move aims to bolster India's economic ties and diversify its trade partnerships globally, reported Mint. The renewed interest in an FTA with New Zealand comes after previous negotiations were paused in 2015. New Zealand has reached out to us for FTA talks. We are taking it with priority, a senior official stated, speaking on condition of anonymity. The official noted that geopolitical shifts have led many developed economies to seek trade alliances with India, recognising its position as one of the world's fastest-growing major economies. Concurrently, India is exploring trade negotiations with South Africa, a key member of the South African Customs Union (SACU). This move is part of India's broader strategy to expand its trade portfolio in the African continent. The potential FTAs face certain challenges. Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), points out that modest trade volumes and New Zealand's request for tariff cuts on agricultural and dairy products may dampen India's enthusiasm. For South Africa, experts emphasize the need for direct bilateral engagement to overcome historical challenges in negotiations. Recent trade data illustrates the current state of economic relations. In the fiscal year 2023-24, India's bilateral trade with New Zealand decreased by 14.82 per cent to USD 873.47 million. In contrast, trade with South Africa grew by 2.3 per cent to USD 19.25 billion during the same period. These potential agreements align with India's recent focus on expanding its network of FTAs. The country has already signed agreements with Japan, South Korea, Australia, and the European Free Trade Association countries. Ongoing negotiations are underway with Oman, ASEAN, and the European Union, among others. As India continues to strengthen its position in the global economic order, these new FTA discussions with New Zealand and South Africa represent significant steps towards diversifying its trade relationships and reducing dependency on traditional markets. The commerce ministry and diplomatic representatives from New Zealand and South Africa have not yet responded to requests for comment on these developments. (KNN Bureau) 38377 https://knnindia.co.in/news/newsdetails/global/india-pursues-new-free-trade-agreements-with-new-zealand-and-south-africa 2024-06-27 17:05:24 knnindia.co.in India Pursues New Free Trade Agreements With New Zealand And South Africa