Low-quality deal: NZ foreign minister slams FTA with India

New Zealand's Foreign Minister Winston Peters has publicly declared his opposition to the recently announced Free Trade Agreement (FTA) between New Zealand and India. Peters, who also leads the New Zealand First party, a key coalition partner, described the pact as a "bad deal" that inadequately benefits New Zealand while demanding too many concessions."We consider the India-New Zealand Free Trade Agreement to be neither free nor fair," Peters stated on the social media platform X. He elaborated that the agreement neglects the protection of New Zealand's economic and labour interests. His party, New Zealand First, is "regrettably opposed" and intends to vote against the legislation required to implement the FTA in Parliament.

He highlighted that while New Zealand is opening its markets to Indian products, India has not reciprocated by reducing significant tariffs on New Zealand's major dairy products. These exports, including milk, cheese, and butter, were valued at approximately $24 billion in the year to November 2025, representing about 30% of New Zealand's total goods exports. This exclusion of key dairy products from tariff reductions is seen as detrimental to New Zealand farmers and rural communities.He specifically pointed to the creation of a new employment visa designated for Indian citizens, expressing concern that this could significantly increase migration interest at a time when New Zealand's labour market is already perceived as tight. Furthermore, Peters warned that proposals regarding work rights for Indian students, both during their studies and post-graduation, could limit the flexibility of future New Zealand governments to adjust policies based on evolving labour market conditions.

Despite opposing the agreement, Peters stressed that New Zealand First remained committed to strengthening ties with India, calling the relationship strategically important. He said India was his first overseas destination as Foreign Minister outside Australia and the Pacific and noted increased diplomatic resources dedicated to the relationship.