Todd McClay: Trade Minister comments on Modi's visit, trade expectations set by FTA

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The Mike Hosking Breakfast 4 min 2 speakers 4 chapters transcribed 2 months ago
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How did Narendra Modi’s Auckland visit and FTA signing upgrade New Zealand–India relations?

Mike Hosking 0:00
So a lot of love in the room as the Modi Express rolled through Auckland Saturday to sign up the FTA and as it turns out upgrade the relationship to a strategic partnership. Trade Minister, Acting Foreign Minister Todd McClay with us. Morning.
Todd McClay 0:10
Right, good morning.
Mike Hosking 0:11
Is there a magnetism about him, Modi?
Todd McClay 0:14
Yes, yes there certainly seems to be. I mean you can see it on TV but I've had a couple of chances to meet him and talk to him now. And actually, he is very, very calm and very thoughtful. And I can see why he's the longest-serving prime minister India's had. It was a very positive visit to New Zealand.

What impressions did Trade Minister Todd McClay share about Modi’s personality and visit tone?

Mike Hosking 0:32
Were you expecting the upgrade? You must have been, obviously.
Todd McClay 0:34
Well, we'd been working through it. And so the answer is yes. There's a number of organizations and countries who have wanted to do this. But, Mike, it's a little bit like the free trade agreement. It's come quite quickly with India. It was only three years ago we said we would make the relationship with India a strategic priority. So across the board, this just shows that it is now more than trade, areas of defense and security, you know, political, diplomatic cooperation. Of course, the trade, people and culture. A really interesting one is education, science, climate change and disaster management. You know, areas where, you know, we should be working with many other countries. Often we are. We now get to with India.
Mike Hosking 1:11
How does that materially actually work?
Todd McClay 1:15
Well, two things. The first is at government-to-government level, the two leaders have said this is a priority. So now both sides, the government and the agency, start leaning into it. There are a number of other relationship agreements signed to back this up. In my area of the primary sector, with veterinary medicine and things, we've signed to cooperate. In some areas, it will be officials or experts from either country visiting and getting to know each other. In some cases, the science things, our universities working more closely together. So it really just says that we're going to do much more together.

Why was the strategic partnership upgrade expected and how quickly did it come about?

Todd McClay 1:48
And this is the framework that sort of gives permission or a very strong indication to the officials on both sides to start doing the work.
Mike Hosking 1:56
Not that it's not good for us, but he was on a circuit last week. I mean, he touched base with us. He's in Australia. I think he's up in Indonesia. Is he just doing this with everybody?
Todd McClay 2:05
Well, not everybody. I mean, since he's been Prime Minister, he's visited 100 countries, so he's keen to get out there. But 40 years since an Indian Prime Minister last visited. So yes, he went to Australia and on to Indonesia, but I suppose he didn't have to come to New Zealand. I think it's very clear if we hadn't have worked so very hard together on the FDA, he probably wouldn't have come here. And so now I think only good things come as a result. It was clear to me that he enjoyed New Zealand and And although it was a short visit, you know, it was really a celebration. He was a very, very good space and in a very, very good mood. So he's gone away with a positive impression with us, which again, you know, it can't be a bad thing.
Todd McClay 2:44
It's a very good thing.
Mike Hosking 2:45
Indeed it is. On the strategic side of things, when it comes to defence, whose side are they on? China's or ours? The US or China? Where do they sit there?
Todd McClay 2:53
Yeah, so they probably sit in the middle a little bit. They look out for what's best for India, as largely in many cases with our independent foreign policy, we do as well. What this means is just there'll be areas that we cooperate.

How will the strategic partnership translate into cooperation on education, science and climate?

Todd McClay 3:05
So we've already had a few military officials from either direction come and start talking. There will be opportunities for some of our ships from the Navy to do different things together. There are parts of the world, you know, that we already have personnel there together, albeit not in full cooperation. So ultimately, it's just another step in the direction of building the relationship further.
Mike Hosking 3:27
I still note there was this bitching over the $20 billion over the weekend. All I know about FTAs is that they do better than we ever thought possible.

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