India won’t compromise on dairy, MSMEs in trade pacts, says Piyush Goyal after meeting New Zealand PM

Auckland: Commerce and industry minister Piyush Goyal on Wednesday said India consistently protects the interests of vulnerable sectors such as dairy and micro, small and medium enterprises (MSMEs) in its free trade agreements (FTA). He made the comments after his meeting with New Zealand Prime Minister Christopher Luxon and his counterpart Todd McClay to review the progress of the FTA negotiations, which were formally launched on March 16.

Goyal is on his first official visit to New Zealand from November 5-8.

"The fact that he has come down to New Zealand is a really big sign of the conversation, the progress that we're making, and it's a really important relationship for New Zealand so it's important I spend some time with him," Luxon said after an event.


Luxon held about 15 minutes of intense talks with both Goyal and McClay even as his cavalcade was waiting.

India's goods exports to New Zealand in April-September totalled $298.48 million, while imports amounted to $302.5 million.

The two sides began negotiating a trade pact in April 2010 but the talks were stalled in 2015.

The third round of negotiations for the agreement concluded on September 19 in Queenstown, New Zealand. The fourth round is in progress.

Dairy and agriculture are politically sensitive areas for India.

"India never compromises on the interests of dairy, farmers and MSMEs. We consistently protect the interests of vulnerable sectors," Goyal said.

However, he said that India and New Zealand can cooperate in the area of farming such as dairy machinery, after which "mini dairies" can be set up.

His statement assumes significance as New Zealand is a major dairy player in the world and it may seek greater market access in the sector.

Talking about sensitivities involved in the trade pact talks with different nations, Goyal said, "What I do with the EU for example, a $20 trillion economy, or what I do with the 10-nation ASEAN group, collectively a very large population and economy, cannot become a benchmark for what I will be able to do with New Zealand."

Size and scale of a country will have to be taken into consideration while negotiating these trade deals, he said, adding that India's market size is huge.

When asked whether the trade deal between India and New Zealand is going to happen before the deal with the United States, Goyal said, "I don't think we ever discuss deadlines when we finalise or discuss or negotiate a treaty. Every agreement stands on its own legs, and every agreement is important. Every agreement is tailored based on the situation in each country, and every agreement will happen at the right time."

(The reporter is in New Zealand at the invitation of Ficci.)