Tim Groser: Former Trade Minister on New Zealand entering free trade negotiations with India

The state of foreign affairs across the globe could play into New Zealand's hands as it enters free trade negotiations.  

A Government delegation has landed in the Indian capital to begin the process of securing an FTA.  

Former Trade Minister Tim Groser told Mike Hosking he's never loved our chances, but the odds have changed.  

He says the landscape has changed because of Donald Trump's approach to trade - which could make a deal easier to pull off. 

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Episode Transcript

Speaker 1 (00:00):
Next step in our year's long journey to try and
get this FTA with India. The government delegations landed in
New Delhi for the first in person round of negotiations.
The politics of it is interesting. The government, of course,
has promise this deal in their first term. So what
chance former trademan is to Tim Grosser, Well, there's Tim,
morning to you.

Speaker 2 (00:15):
Good morning, Mike.

Speaker 1 (00:15):
What are your assessment of the chances?

Speaker 2 (00:19):
Well, look, if past form were any guide, they would
not be very encouraging. But I think the landscape and
I'll elaborate in a second, but the landscape is changed
as a result of Trump's trade bombs, and I'm thinking
that will change the odds of pulling this off. And look,
it's a good idea anyway, to have a go whatever

(00:41):
the chances of success are, because this is the world's
emerging third largest economy and we are undoubtedly will have
a much bigger economic future with India regardless of how
the talks go.

Speaker 1 (00:54):
Is the political overlayer problem for us? When you promise
it will be done term one, the pressure's on you
and the Indians know it, don't they.

Speaker 2 (01:02):
Oh, Look, I don't think that's a real issue. The
negotiations will run their normal course of events, and as
long as the government's making a lot of progress in
the period of time, I don't think this is a
large issue. The larger issue is India with a track
record or walking away from negotiations. Is India now prepared

(01:24):
to move forward commensure it with its enormous future role
in global trade? And that is something that has to
be answered by India, not buy New Zealand exactly.

Speaker 1 (01:33):
And as you would well understand, we then have a
deal versus a deal. I mean, just getting a deal
can't be hard if you're prepared to give everything away.
Do we get a good deal?

Speaker 2 (01:43):
Well, we've We've got very little to give away because
already an open economy. The Indians will not do this
because they want better access to New Zealand. The Indians
will do this because they see a broad a strategic rationale.
And that's where I come back full circle. So look,
just go back on the history this, John Key and
I started a negotiation exactly on these lines in twenty ten.

(02:08):
The Indians, whoever track quick word of moving unbelievably slowly
on international trade issues, took this into ten rounds of negotiations.
The bilateral FDA was abandoned in twenty I think twenty fifteen,
when India joined the larger FDA idea of this Asia

(02:29):
Pacific thing called the Regional Comprehensive Economic Partnership Agreement, which
involved China, the Southeast Asians, Australia and New Zealand. And
even that fell apart when India was invited to leave
the negotiations. So India has got this very protectionist history,
but I think India is coming out of that, out

(02:52):
of that, and I think there's a real chance of
pulling this off.

Speaker 1 (02:55):
Good stuff, Tim, Nice to talk to you again, Tim Grosser,
former Trade Minister. For more from the Mica King Breakfast,
listen live to News Talk Set B from six am weekdays,
or follow the podcast on iHeartRadio