Business / Country

Spotlight falls on India at international trade conference

16:06 pm on 15 June 2023

Some participants argued at the conference that New Zealand should be able to improve relations with India without sacrificing its ties to China. Photo: Unsplash / Aboodi Vesakaran

Improving relations with India was a recurring theme at last week's annual conference of the New Zealand Institute of International Affairs.

Speaker after speaker at the gathering in Auckland talked about upping New Zealand's engagement with India in terms of security and trade. There were also calls to invest more in developing a better understanding of the South Asian nation.

"India, the world's most populous country and the world's fifth-largest economy, is a vital actor and an important partner," Foreign Minister Nanaia Mahuta said in her keynote speech.

"Building on the significant lift over the last year, we will grow and invest in our relationship, seeking a steep change to broaden areas of opportunity and cooperation."

India recently participated in a summit with the Pacific Islands, reflecting its desire to engage with the region, Mahuta said.

Fijian Prime Minister Sitiveni Rabuka acknowledged the "increasing military competition among great powers in the region, which is something we can't move away from".

Fijian Prime Minister Sitiveni Rabuka (file photo). Photo: RNZ / Samuel Rillstone

Australian Institute of International Affairs national executive director Bryce Wakefield said New Zealand sat uncomfortably with the Quadrilateral Security Dialogue between Australia, India, Japan and the United States, also known as the Quad.

Aotearoa needed to engage with Quad countries more, Wakefield said.

His remarks were supported by Marc Abensour, French ambassador for the Indo-Pacific region, who noted the prominence of India as a counter to a rising China.

"While there are concerns all around about the growing influence of China in the Indo-Pacific, India is increasingly seen as a counterbalance," Abensour said.

Some participants argued against forcing small nations to choose between India and China.

They said New Zealand should be able to improve relations with India without sacrificing its ties to China.

"Ideally, it shouldn't be China versus the rest," Victoria University associate professor of international relations Manjeet Pardesi, who moderated a panel during the conference, said.

US Assistant Secretary of State Daniel Kritenbrink, meanwhile, tried to allay any fears that Washington was trying to contain China by deepening ties with strategic partners.

"It's not our policy to arm-twist our partners to choose," Kritenbrink said.

On trade, European Union Ambassador Nina Obermaier hinted at the bloc's ability to safeguard the interests of its farmers, while providing New Zealand with access to its markets.

The primary sector has been a notable sticking point in ongoing India-New Zealand free-trade negotiations.

"Dairy was an obstacle in our negotiations with New Zealand as well," the EU diplomat said. "But I am glad we have found the right balance."

Talking to RNZ after the conference, Obermaier refused to second-guess why India and New Zealand had not been able to achieve the same result, saying "It's for authorities in these countries to answer".

Victoria University professor of international relations David Capie said there had been an "under investment in resources to develop our very own understanding of Asian languages and culture, including that of India and China".

"The proposed cuts across universities have further exaggerated the problem," Capie said. "If we don't have people, we look at others for guidance. They will help but might have their own interests at heart."

MinterEllisonRuddWatts partner Sarah Salmond asked the government to be "careful and creative" when dealing with India.

"We should be looking at tariff reduction outside the FTA (free-trade agreement)," she said.

"We should start thinking in terms of what we can offer India in terms of agriculture technology, including sustainable farming and biosecurity. Recently, India has made a huge push towards renewable energy. We should look for tie-ups in this sector."