India FTA negotiations start

February 1st, 2010 at 9:00 am by David Farrar

The Herald reports:

and New Zealand have begun negotiations for a which Trade Minister Tim Groser says will put New Zealand in a prime place to benefit from ’s economic growth. …

Mr Groser said a deal held “great promise” for New Zealand businesses and negotiators would target the high barriers to trade. India had a population of more than one billion and was expected to be the third-largest economy in the world by 2025.

India’s GDP currently is US1.2 trillion – around ten times the size of New Zealand’s

He expected negotiations to be prolonged. India was not one of New Zealand’s traditional trading partners, partly because the high trade barriers on major New Zealand exports, such as wood products and agriculture, had held back trade.

That suggests the benefits of an FTA with India could be a lot larger than with countries with relatively low barriers.

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16 Responses to “India FTA negotiations start”

  1. MikeNZ (3,234 comments) says:

    how much an hour do they pay the kids that work for them?

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  2. Redbaiter (13,197 comments) says:

    Go away Mr. Groser, and take your cronyist and corrupt Indian counterparts with you. Let business people conduct business.

    250 times the population but only 10 times the economy. A nation of poor people.

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  3. Countess (157 comments) says:

    Would India have 0.05% of the population paying 70% of the taxes. ?

    Perhaps they rely on customs duties for a large part of the revenue stream

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  4. Adolf Fiinkensein (2,667 comments) says:

    Oh ye of little vision.

    One of the only two major countries not to slide into recession during the past few years.

    RB, you dickhead, what the hell do you think an FTA is for, other than to let business people conduct business?

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  5. Countess (157 comments) says:

    Actually Im right ?
    Going to the India budget numbers

    http://indiabudget.nic.in/ub2009-10/afs.htm
    Customs duties is 98,000 crore rupees

    While taxes other than corporation tax is 106,800 crore rupees.

    Their customs duties income for 2009- 2010 is about the same as their personal income tax revenue !

    Expect the India ‘ FTA’ to be like China, ie very little in reduction in duties and more about other side issues like more Chefs working in NZ

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  6. Redbaiter (13,197 comments) says:

    How much business have you conducted in India Adolf?

    Try it sometime, and see how much relevance any FTA might have.

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  7. Murray (8,835 comments) says:

    Excellent, another oportunity for outsourcing our economy and income beckons.

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  8. Viking2 (10,703 comments) says:

    Hey Countess, you forgot the dairy owners!
    Logs and timber will go because India like China is desperately short of both. Timber prices to rise significantly in the next few years. Now that will piss of Bollard and co as houses get dearer. Oh dear how sad. Their response. Ramp up interest rates. Well that’s what they do isn’t it.
    Which is a classic example of why the Reserve bank Act is foolish.

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  9. Murray (8,835 comments) says:

    Timber prices raise almost enough to keep up with the loss of earnings from ETS taxation on cutting the trees down, whoo freakn hoo.

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  10. Countess (157 comments) says:

    A crore of rupees is 10 million.

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  11. Sean (294 comments) says:

    RB has a point. Doing business in India isn’t about the rules. And I pity Tim Groser trying to negotiate with the Indian government. Been there, done that, they are the masters of stonewalling…

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  12. Richard Hurst (710 comments) says:

    Mutton! These people need mutton and lamb-it would make a change from all that goat and they can’t touch beef.

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  13. Clint Heine (1,560 comments) says:

    Hear hear, it’s about time we got a FTA with India. A fine nation, full of entrepreneurs and a race of extremely hard workers.

    Any benefit for NZ makes me comfortable with this deal. Redbaiter, what experience do you have with the bureaucracy in India? (not a harsh question, as I suspect from my experiences there that it isn’t easy)

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  14. Murray (8,835 comments) says:

    My family has some Clint, they fled from it during the mutiny.

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  15. tvb (3,938 comments) says:

    Over the longer term India has more potential than China plus it has a democratic form of Government (though very corrupt) so it fits better than China plus we have a shared history. China with its one child policy is going to crash as the population takes a dive with a huge bubble of old people being supported by a shrinking younger population with not enough females.

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  16. Clint Heine (1,560 comments) says:

    I bet Murray! I found my exp with bureaucracy to be extremely time consuming and of no real importance. I would have hoped that at a higher level it would be better. If I had to choose btw them and China then I’d still pick India.

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