Importance, Binders, Bilateral Trade, Education and Tourism

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Zealand’s important position in the Asia–Pacific region as well as its increasing clout in various global and regional fora.


  • greater investments, trade and people-to-people contact, Commonwealth, parliamentary democracy, English language and sports

  • There are three primary reasons for states to come together: to aggregate

  • power, to solve problems or to build community. If New Zealand and India

  • were to come together for the purpose of power aggregation, there would be

  • three sources of shared threats in the future. The first and most obvious threat

  • would be China, though both countries would be least interested in arriving at

  • an arrangement aimed at ‘containing’ China. The second would be the rise of

  • radical Islam in Indonesia and the threat it poses to that country. A third,

  • convergence is likely to emerge in the future from non-traditional, trans-border

  • disruptive forces and issues necessitating cooperation through multilateral for a and bilateral engagement. Of the three, the third issue has greater potential for convergence. Areas of Divergence With regard to bilateral relations, there have been two major irritants:

  • Nuclear Stance

  • WTO Negotiations: The United States and agricultural

Exporters like New Zealand also want major developing countries to open them markets to more foreign farm products. Developing countries like India and Brazil for whom agriculture is top priority feel their farmers have long suffered from farm subsidies from rich countries and would prefer greater parity in tariff reduction vis-à-vis rich nations. But New Zealand, a major agricultural exporter that gave up farm subsidies years ago, would also like to see the United States and the European Union cut farm support

Bilateral Trade

  • Two-way goods trade between New Zealand and India is valued at over NZ$1.25 billion

  • Imports: primary commodities, Coal, Dairy products, fruit and machinery, Log exports and wood pulp continue to strengthen, along with hides and skins used in the manufacture of leather goods. Wool, as an input into Indian carpets, has traditionally been an important export to India, but is declining. There is great potential for exports to diversify, particularly through the free trade agreement currently under negotiation. India is keen to benefit from New Zealand’s advanced technology in dairy, renewable energy and agro-food industries.

  • services trade: tourism and education.

  • Traditionally, India’s main exports to New Zealand have been gems and Jewellerys. But Indian exports are becoming more diverse, and now include a wide range of manufactured products Opportunities for growth in other services sectors and in investment include professional and business services, environmental services, engineering and construction services, and services incidental to agriculture and forestry.

  • Joint Trade Committee in 1983 and have had discussions on a free trade agreement either bilaterally or through the East Asian Summit, but this has not emerged due to disagreements over agricultural subsidies.

  • several areas of co-operation were identified – the more important ones being, post-harvest technologies/logistic management for the agriculture sector, renewable energy sector, including wind and geo-thermal energy; tourism; films (including animation films); pharmaceuticals; education, IT enabled services; and financial services.

  • The two economies were essentially complementary and there was considerable potential to increase bilateral trade and economic relations.


  • India is one of New Zealand’s fastest growing education markets, now our fourth largest (after China, South Korea, and Japan).

  • 4600 Indian students studying in New Zealand.

  • The New Zealand-India Education Cooperation Arrangement first signed in 2005(renewed 2010): The Arrangement is a broad framework for bilateral cooperation on education. It established an Education Joint Working Group of senior officials.


  • Over 30,000 Indian tourists. The Bollywood connection, especially in Queenstown, has been instrumental in stimulating tourism and links with New Zealand’s film production industry.

  • People to people links

  • There is a vibrant Indian community of over 100,000 in New Zealand (2006 census), around 2.5% of the population.

  • Sir Edmund Hillary honored with Padma Vibhushan

  • The Governor General Anand Satynand was the Chief Guest at the Pravasi Bharatiya Convention held on January 7-9, 2011 and was also honored with Pravasi Bharatiya Samman award.

Sporting Ties: Cricket, Hockey

Defense cooperation: joint naval exercises, Indian and New Zealand troops have served together in United Nations peacekeeping missions in Kosovo and Sudan. 2007 and participated in exercises with Indian Navy.

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