-
Tim Groser - Source: ONE News -
Watch Video
-
Related
Trade Minister Tim Groser says recent free trade initiatives are good news for the New Zealand economy.
Over the past week the government has signed a 12-country free trade agreement with Australia and the ASEAN nations (AANZFTA), and has launched negotiations for a deal with India.
The free trade agreement with ASEAN countries has been in the pipeline for over 10 years.
As a whole, the ASEAN region is New Zealand's third largest export market and in 2008 was worth $4.6 billion.
"We've got $2.5 billion in dairy products alone going to the region. I think it's our fastest growing market, even faster than China in the last few years, so this is in the long term extremely significant," he says.
The agreement will gradually make 99% of New Zealand's exports to key ASEAN countries Indonesia, Malaysia, the Philippines and Vietnam duty free, and will reduce transaction costs.
Groser is also upbeat on the prospect of a free trade agreement with India.
At the moment, New Zealand's exports to India are worth around $US350 million a year, and experts say under a free trade agreement this figure could double.
India is, however, traditionally an inward looking economy and Groser warns trade talks will take time.
"It took 14 rounds with China (free trade agreement). This will be no less complicated. I will be astonished if it took less than two or three years, but we will proceed as fast as possible" he says.
Talks with India are scheduled to begin in July.
Meanwhile, Groser has dismissed concerns that the free trade agreements, including the China agreement signed last October, will do New Zealand businesses out of work.
He says these concerns have "zilch" to do with free trade agreements and international trade.
Auckland University law professor Jane Kelsey has criticised free trade agreements, saying they restrict the government's ability to protect local industry and essential assets from foreign control.
To find out more about the AANZFTA agreement, CLICK here .
