On May 31st the Government of New Zealand released a statement announcing the commencement of groundwork for the eventual negotiations of a FTA between New Zealand and Russia. The statement was released shortly after a meeting between Tim Groser, Trade Minister of New Zealand, and Elvira Nabiullina, Russian Minister of Economic Development, held in Moscow. Tim Groser summarized the achievements of the meeting, saying, “Russia has agreed to proceed towards a formal trade agreement with New Zealand, subject to a satisfactory outcome of scoping discussions.”

According to a New Zealand Government statement, a FTA with Russia could be of great benefit to New Zealand. Russia currently imports in excess of US 30 billion in food annually, which represents a sizeable market opportunity for New Zealand exporters. In a joint statement released on June 1st, both Ministers claimed that the economies of Russia and New Zealand are complementary, with great prospective for cooperative growth. Tim Groser also pointed to the potential of agritech, clothing, specialized manufacturing, ICT, and tourism firms offering services to a Russian market. Currently, two-way trade between the nations has reached USD 300 million.

The two Ministers are expected to instruct their respective Governments to prepare objectives and scopes for the possible FTA. Both Governments will also call for public submissions on the prospective agreement.

Photo by Velvet Android

It was noted by the ministers that 2009 marked the 65th anniversary of the establishment of diplomatic relations between the Russian Federation and New Zealand. In a sign of a continued productive relationship it was agreed by both parties to expand potential trade, economic, scientific, cultural and educational opportunities between the nations.

In an agreement on the importance of increasing economic ties between the jurisdictions, both ministers confirmed the importance of strengthening Asia-Pacific regional integration and cooperation on APEC. Further, Murray McCully stated that the New Zealand Government fully endorses Russia’s accession into the World Trade organization (WTO). The New Zealand Minister also requested for the Russian Federation to support New Zealand’s candidature for election to the UN Security Council as a non-permanent member for 2015-2016.

Discussions were also held regarding the addressing the issues facing the Middle East, Iran’s nuclear program, and the conflict in Afghanistan. Revisions were also held on cooperation on Antarctic research and nuclear non-proliferation plans.

Photo by nznationalparty

The Asia-Pacific Economic Co-operation (APEC) is most likely going to be based around the current economic situation of the world and the possible responses of all countries involved in the meeting. If the recently finished G20 summit is any indication, the economic situation will be the primary talking point.

The meeting is attended by 20 world leaders, and over 3600 delegates. Figures show that the trade between APEC countries accounts for almost half of that in the world and nearly 60 percent of the world’s Gross Domestic Product.

John Key is scheduled to meet the Queen of England, and the British Prime minister after the APEC meeting.

The current APEC countries are Australia, Brunei, Canada, Chile, China, Indonesia, Japan, Hong Kong, South Korea, Malaysia, Mexico, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the United States and Vietnam. India, Mongolia, Pakistan, Laos, Bangladesh, Colombia and Ecuador are also seeking membership.

India’s third largest bank, the Bank of Baroda, has announced that they will establish a commercial banking wing in New Zealand, with the initial branch being penned for Auckland. It is understood that the bank aims to function as a subsidiary company. Governance will be held by a mix of both local and overseas directors and that a senior executive has already been appointed to head the Auckland branch.

The now retired chairman and director of the Bank of Baroda, Dr Anil Kumar Khandelwal, said in an interview that the expansion into New Zealand was part of the bank’s “Look East Policy”, which sees it expanding and interacting more with other ASEAN nations. He went on to say that the bank has plans to expand into Canada, Kuwait, Mozambique, Qatar, Russia and Saudi Arabia.

India’s third largest bank, the Bank of Baroda, has announced that they will establish a commercial banking wing in New Zealand, with the initial branch being penned for Auckland. It is understood that the bank aims to function as a subsidiary company. Governance will be held by a mix of both local and overseas directors and that a senior executive has already been appointed to head the Auckland branch.

The now retired chairman and director of the Bank of Baroda, Dr Anil Kumar Khandelwal, said in an interview that the expansion into New Zealand was part of the bank’s “Look East Policy”, which sees it expanding and interacting more with other ASEAN nations. He went on to say that the bank has plans to expand into Canada, Kuwait, Mozambique, Qatar, Russia and Saudi Arabia.

Double Taxation agreements prevent the situation of taxation on one income by two countries, through coming to an agreement as to what incomes will be taxed in the country of residence and exempt in the country of occurrence. It also deals with the opposite case where the income will be taxed at the country of occurrence and compensation arises in the country of residence.
Double Taxation also extends to more comprehensive sharing of tax information between tax authorities.

New Zealand currently holds double taxation agreements with the following countries:

Australia
Austria
Belgium
Canada
Chile
China
Czech Republic
Denmark
Fiji
Finland-
France
Germany
India
Indonesia
Ireland
Italy
Japan
Malaysia
Mexico
Norway
Poland
Republic of Korea
Russian Federation
Singapore
South Africa
Spain
Sweden
Switzerland
Taiwan
Thailand
The Netherlands
The Philippines
United Arab Emirates
United Kingdom
United States of America