Trade Minister Tim Groser has negotiated a deal in Moscow to start work on a free trade agreement with Russia.Mr Groser said: "Russia has agreed to proceed towards a formal trade agreement with New Zealand, subject to a satisfactory outcome of scopin
Trade Minister Tim Groser has negotiated a deal in Moscow to start work on a free trade agreement with Russia.
Mr Groser said: "Russia has agreed to proceed towards a formal trade agreement with New Zealand, subject to a satisfactory outcome of scoping discussions.
"This is a significant step which in the long term could have significant potential for New Zealand businesses looking to expand into the broader European market."
An FTA would be a first for Russia, whose economy is dominated by oil exports.
Russia imports around $US30 billion worth of food a year, making it the world'’s fifth largest importer and one of the biggest importers of meat and dairy products.
Opportunities also exist in the wider agritech sector and in the growing areas of tourism and education, Mr Groser said.
"While there is much water to go under the bridge yet, an FTA with Russia and its Customs Union partners of Belarus and Kazakhstan could present a unique opportunity for New Zealand to future-proof its relationship with an emerging economic powerhouse," Mr Groser said.
New Zealand's exports to Russia have increased 267% from $NZ51 million in 2000 to $NZ187 million in 2009.
