Modi holds talks with Luxon; explores increased trade ties
As maritime nations, India and New Zealand have a strong and common interest in an open, inclusive, stable and prosperous Indo-Pacific, where the rules-based international order is upheld
New Zealand Prime Minister Christopher Luxon came to India on an official visit last week accompanied by a high level delegation comprising officials, and representatives of businesses, community diaspora, media and cultural groups. He was accorded a warm and traditional welcome in New Delhi where he held bilateral talks with Prime Minister Narendra Modi.
The two leaders reaffirmed their shared desire to further strengthen the growing bilateral relationship which is anchored in shared democratic values and robust people-to-people ties. Both leaders recognised that there remains significant potential for further growth in the bilateral relationship and agreed to cooperate closely in diverse areas, including trade and investment, defence and security, education and research, science and technology, agri-tech, space, mobility of people and sports.
The Prime Ministers exchanged views on regional and global developments of mutual interest and agreed to strengthen multilateral cooperation. The Prime Ministers recognised that we face an increasingly uncertain and dangerous world. They noted that, as maritime nations, India and New Zealand have a strong and common interest in an open, inclusive, stable and prosperous Indo-Pacific, where the rules-based international order is upheld.
The Prime Ministers reaffirmed the right of freedom of navigation and overflight and other lawful uses of the seas in accordance with international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS). The Prime Ministers reaffirmed the need to pursue peaceful resolution of disputes in accordance with international law, particularly UNCLOS.
The two leaders noted with satisfaction the strong connections between the people of the two countries, with Indian-origin people making up almost six per cent of New Zealand’s population. They appreciated the significant contribution of the Indian diaspora in New Zealand and their positive role in facilitating people-to-people ties between the two countries. Both leaders agreed on the significance of ensuring the safety and security of the Indian community, including students, in New Zealand, and of New Zealanders in India and visitors to India.
The Leaders recognized the positive role played by tourism in generating economic growth, increasing business engagements and generating greater understanding between people of the two countries. They welcomed the growing flows of tourists between India and New Zealand. They appreciated the update to the India-New Zealand Air Services Agreement and agreed to encourage their carriers for commencement of direct (non-stop) flight operations between the two countries.
Free trade pact being explored
Prime Minister Modi and New Zealand Prime Minister Luxon have welcomed the launch of free trade agreement (FTA) negotiations for a balanced, ambitious, comprehensive, and mutually beneficial trade agreement to achieve deeper economic integration. The two leaders agreed in New Delhi that a comprehensive trade agreement offers a significant opportunity to enhance trade and economic cooperation.
By leveraging each country’s strengths, addressing their respective concerns, and tackling challenges, a bilateral trade agreement can foster mutually beneficial trade and investment growth, ensuring equitable gains and complementarities for both sides. The two leaders committed to designate senior representatives to steer these negotiations to resolution as soon as reasonably possible.
Within the context of FTA negotiations, the leaders agreed to discussions between respective authorities on both sides to explore early implementation of cooperation in the digital payments sector.
The Prime Ministers welcomed the signing of the Authorised Economic Operators Mutual Recognition Arrangement (AEO-MRA) under the aegis of the Customs Cooperation Arrangement (CCA) signed in 2024, which would facilitate easier movement of goods between the two countries by trusted traders through close cooperation between customs authorities, thereby boosting bilateral trade.
The leaders welcomed new cooperation on horticulture and forestry, including: the signing of the Memorandum of Cooperation on Horticulture which would enhance bilateral cooperation by promoting knowledge and research exchanges, development of post-harvest and marketing infrastructure; and the signing of a Letter of Intent on Forestry Cooperation that encourages policy dialogues and technical exchanges. Both Leaders welcomed the signing of the India-New Zealand Memorandum of Understanding for Defence Cooperation. This will further strengthen bilateral defence cooperation and establish regular bilateral defence engagement. Both sides noted the need for ensuring the safety and security of sea lanes of communication and agreed there needs to be regular dialogue to discuss enhancement of maritime safety.