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Shipping containers at a port in China - Source: ONE Sport -
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New Zealand's Trade Minister says a trade deal due to be signed with Hong Kong India ""puts the cream on top of the China deal".
Tim Groser told TVNZ's Q+A programme that the deal is more strategic than specific.
New Zealand's trade agenda is at a pivotal moment with the Hong Kong deal and talks due to get under way in India. Last week eight countries, including NZ, met in Melbourne to begin negotiations on the trans-Pacific partnership (TPP) covering 470 million people and economies worth a potential 22 trillion dollars.
Groser told Guyon Espiner that the TPP would be the world's biggest free trade block if it happened.
The objective is to try to from the TPP in the next two years and Groser says while the target is very challenging, US President Barack Obama has signalled it is near the top of his administration's trade agenda.
Historically access to markets has been New Zealand's biggest barrier and Groser says what is happening now is "transformational".
He says deals would have to look at non-tariff barriers such as labour and the environment and it is not enough to just look at tariff barriers, although they are still very significant.
He says New Zealand needs trading opportunities and it is vital to focus on the big picture.
For India, Groser says the appeal is to move strategically into the Asia Pacific region while the main benefit for New Zealand is to negotiate their major trade barriers downwards.
And Groser hasn't ruled out the potential for movement on our traditional agriculture exports although he says this will be difficult and will take years to complete.
He says a deal with India is likely to be similar to the one with China and could include some access to New Zealand's labour market with a few jobs in highly specialised areas. But Groser says forget the idea of massive migration from India as a consequence of the FTA.
Negotiations will involve labour and environmental standards, says Groser but these are talking points for the future.
"De facto, New Zealand is moving to complete free trade," the Trade Minister says.
