China No Longer Just A Commodity Story - Luxon
China remains New Zealand’s biggest market, taking $23 billion of our exports, but it’s no longer a commodity story, says Prime Minister Christopher Luxon.
The case for New Zealand doing more with India is clear. India is an important partner for New Zealand in the Indo- Pacific.
India is moving closer to key partners in the region, including Australia, the US, and Japan as well as our neighbours in South East Asia. India’s interest in the South West Pacific is also growing and we welcome your engagement.
As we look to step up our relationship, we are mindful that “India is different and requires a different approach”. This message came through loud and clear in the India-New Zealand Business Council’s insightful report.
If we have learned anything over the last 10 years, it’s that a short term, narrow and transactional approach won’t work with India. We need to understand that India sees its relationship with New Zealand in broad terms.
And we respect this.
The political, defence and security, people-topeople, cultural and economic elements of the relationship are all linked. Our relationship with India has these partnerships at its core; the reason we are together is our shared history and our shared values.
Trade is not just a transaction. Trade is sharing that flows from these human connections.
As a Government, we have been working on building a holistic relationship with India. Our economic cooperation needs to be based on mutual benefit. This means supporting India’s development aspirations in a way that benefits both countries’ sectors.
Let us also not forget the significant potential for Indian exporters to New Zealand. Our market is small but it is also high value and well regulated. With only US$700 million in imports from India, each year there is room to grow.
One call that has come through clearly from the business community is that we need to be present in India. New Zealand, as the smaller partner, needs to put the effort in.
As a Government, we can support you and the relationship by ensuring a regular pattern of Ministerial and Prime Ministerial engagement.
While I hate to say it, I think we can learn a thing or two from our cousins across ‘The Ditch’. Sustained engagement between Prime Ministers and Ministers from both governments has been a critical part of the step change that Australia achieved in its relationship with India.
In discussions with my counterparts, I am cementing in the idea that we need to meet annually.
We also need to see more New Zealand Ministers from other portfolios visiting India.
This builds on the visits by Ministers of Foreign Affairs and Food Safety, as well as my own visit, all of which have taken place over the last 12 months.
These visits are backed up by the work of officials. We have an active and committed High Commission in India and staff from a range of agencies across South Asia who will be critical to providing the bridge to the Indian Government.
A range of arrangements that underpin our relationship are also under discussion on defence cooperation, air services, and customs.
It is clear too that we need to work together as government and business communities in both countries. It makes no sense to be pulling in different directions.
Rest assured you have the commitment of the New Zealand Government to take the agenda forward. I am confident that by working together we can lift the India - New Zealand relationship and partnership to new heights.
