30 Jun 2011

Key confident trade deal with India will be reached

6:29 am on 30 June 2011

The Prime Minister says he feels more confident a free trade agreement can be struck with India than before he arrived in the sub-continent.

John Key and his Indian counterpart Manmohan Singh emerged from talks giving their full backing to a trade deal.

They say there would be benefits for both countries from a significant expansion of trade and investment.

Mr Key says the Indian government has demonstrated its willingness to progress talks, by granting him an audience with, among others, Sonia Gandhi, the chairperson of the ruling Congress Party.

Dr Singh says India would like to see a significant expansion of trade and investment between the two countries.

Mr Key also visited the set of a Bollywood film.

NZ jobs 'not at risk'

Mr Key says trade deals with Australia and China show there is no need for concern that a similar agreement with India will mean fewer jobs for New Zealanders.

The Council of Trade Unions has said it is concerned about the potential impact on the job market in New Zealand, and the labour rates and standards for workers in India.

However, Mr Key says similar fears have proved to be unfounded in the past.

"They're exactly the same concerns when we signed CER (Closer Economic Relations) nearly 30 years ago with Australia; they're the same concerns that were voiced when in 2008 we signed the free trade agreement with China.

"You look at it and you say, 'has that actually been the result' and the answer is no. In fact, the trade imbalance with China has dramatically been eliminated."