New Zealand, India FTA likely by March 2012, says John Key

Energy cooperation and trade ties will figure in talks between Prime Minister Manmohan Singh and his New Zealand counterpart John Key, who today said he expected to ink Free Trade Agreement (FTA) with India by March next year.

The two sides will also be signing few pacts during Key's three-day visit, official spokesperson Vishnu Prakash said, adding the visit would provide an opportunity for the leaders of the two countries to exchange views and perspectives on regional, multilateral as well as bilateral issues of mutual interest.

Observing that New Zealand and India have already completed about five rounds of negotiations, Key, on the sidelines of function here, said, “We expect it to be signed by March 2012.”

However, he added the conclusion would depend on the quality of agreement and negotiations. The two countries hope to increase their bilateral trade to $three billion from the current $1.2 billion.

The negotiations for India and New Comprehensive Economic Cooperation Agreement (the official name for FTA) started last year. Asked if India would seek civil nuclear cooperation with New Zealand, government sources said energy cooperation was one of the important aspects and would be discussed.

Commerce and Industry Minister Anand Sharma, who visited Auckland in May, had said the two countries could cooperate in several segments, including agriculture, pharmaceuticals, dairy products, research and development, tourism and films.

India has already implemented similar agreements with Singapore and South Korea and signed such pacts with Japan and Malaysia. Key kicked off his three-day trip with a visit to the Taj Mahal today. The visiting prime minister will also travel to Mumbai, where he will meet the Maharashtra governor and visit a Bollywood studio.