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New Zealand group endorses India – Israel Free Trade Agreement

The emerging India-Israel-New Zealand friendship group has endorsed the newly announced Free Trade proposal between India and Israel.

The Indian Foreign Minister Subrahmanyam Jaishankar has just completed a five day visit to Israel. The centre-piece of the trip was the proposed free trade agreement between India and Israel.

Ian Dunwoodie, spokesman for the emerging group, has likened the initiative to the New Zealand – United Kingdom Trade Agreement which has just been announced.

He said, “New Zealand has made a big step with the UK Agreement. The question is whether we can also position ourselves to benefit from the India-Israel plan. It is a great opportunity for them. We should do what we can to join them at the table.”

Formal talks between India and Israel will begin in November, and because of the preparatory work already done their officials expect that the Agreement will be completed this coming year.

Ian Dunwoodie said this presents New Zealand with an opportunity to reach out to India, to Israel, and to both of them together – “We should use it as a beach-head to take advantage of their growing trade”.

He noted that New Zealand is formally part of 12 free trade agreements, with others in the pipe-line. But that we have no formal FTA in place with India or Israel. He said that we should make the most of this – “Maybe we can piggy-back on the India-Israel Agreement”.

“According to India’s Government, India’s trade with Israel was US$ 4.67 billion last fiscal year. This will surely balloon once their new agreement is locked in”.

He added it seems that India is preparing to also sign bilateral FTAs with Australia, United Arab Emirates, the UK, and Canada.

According to New Zealand’s Ministry of Foreign Affairs and Trade (MFAT), at December 2019, before Covid arrived, India was New Zealand’s 11th largest trading partner, with total trade in goods and services worth more than NZ$ 2.7 billion.

Exports to India were NZ$ 1.7 billion (key exports included logs, wood products, travel services, fruit, and education services), and imports from India were NZ$ 1 billion.

MFAT also says India’s US$ 2.8 trillion economy is the third fastest growing major economy in the world (after China and Indonesia). And that by 2027 India’s population will likely surpass China’s – making it the world’s most populous country.

New Zealand began free trade negotiations with India in April 2010. But it seems to have lost momentum. The 10th and most recent round was held in Delhi back in early 2015.

On the other hand, the India – Israel deal appears to be proceeding rapidly.

During the recent trip to Israel, Indian Foreign Minister Jaishankar met with Israeli Prime Minister Naftali Bennett, along with Israel’s Foreign Minister, Yair Lapid (who because of the Coalition Government is expected to succeed Bennett as Israel’s next Prime Minister).

While there Jaishankar said that India sees Israel “in many ways perhaps our most trusted and innovative partner”, and that the “degree of trust between us is very high”.

Later during the visit, the Israeli Prime Minister made similar comments – “I speak on behalf of Israelis – we love India. We view India as a huge friend and we’re looking forward to expanding our relationship in all fields and dimensions”.

An official statement, following their meeting, said that the two discussed “strengthening the strategic alliance, expanding bilateral ties and deepening the warm friendship between Israel and India”. And that on behalf of Indian Prime Minister Narendra Modi, Naftali Bennett was invited to make his first official visit to India.

During the same visit the Speakers of the Indian Parliament and the Israeli Parliament (the Knesset) announced the establishment of a parliamentary friendship group. The Israeli Speaker, Mickey Levy, said the visit “marks another significant milestone in the great relationship between Israel and India”.

Back in New Zealand, Ian Dunwoodie said, “The recent visit to Israel by the Indian Foreign Minister seems to have been a great success. A major free trade initiative appears to be underway. It is definitely hoped that New Zealand can position itself to take full advantage of this India-Israel gambit”.

For more information on the NZ-based emerging India-Israel-New Zealand friendship group

 

 

 

Contact Ian Dunwoodie at ian.dunwoodie@gmail.com

By Ian Dunwoodie, mobile: 022 495 82 87, ian.dunwoodie@gmail.com