New Zealand, an emerging destination for India's exports, has started negotiations for a Free Trade Agreement (FTA). The decision to start FTA talks was taken at a meeting of Union Commerce and Industry Minister Anand Sharma with New Zealand's Trade Minister Tim Groser at the World Economic Forum in Davos. New Zealand, one of the main architects of the Asia-Pacific Economic Cooperation (APEC), already has FTAs with Singapore, Thailand, China and Malaysia.
New Zealand Chairman Mike Petersen said they need to overcome cultural and technical trade issues with India so that it provides big boost for New Zealand agricultural products thus helping them develop their hidden potentials, like the wool industry of New Zealand which can be used by India for carpets and other traditional products. Exported goods worth $442 million including coal, timber, wool and hides, summed up to an increase of 16 per cent last year.
India is now New Zealand's 13th largest export destination. Potential for increased trade exists in relation to the export of goods and services in relation to tourism, IT, films and education.