New Zealand Foreign Minister Winston Peters has raised strong objections to the recently announced free trade agreement (FTA) with India, describing the deal as “neither free nor fair” and cautioning that it could disadvantage New Zealand’s key sectors.
Key Concerns Highlighted by Peters
In a detailed post on X, Peters argued that the FTA disproportionately favors India, giving it greater access to New Zealand’s labor market and investment opportunities while providing insufficient benefits to New Zealand.
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Dairy Exports Left Out: Peters noted that the deal excludes major dairy products like milk, cheese, and butter, leaving New Zealand farmers without preferential access to the Indian market.
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Labor Market Access: The FTA creates a new employment visa specifically for Indian citizens, which Peters warned could strain New Zealand’s tight labor market.
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Trade Imbalance: While New Zealand has fully opened its markets to India, reciprocal reductions in Indian tariffs on key New Zealand exports are limited, he said.
Peters also emphasized that the New Zealand First (NZF) party had previously urged its coalition partner not to rush into the agreement, suggesting that a higher-quality, mutually beneficial deal could have been negotiated over the full three-year parliamentary cycle.
India–New Zealand FTA Overview
The India–New Zealand FTA was announced by Prime Minister Narendra Modi and New Zealand PM Christopher Luxon, aiming to double bilateral trade in five years and attract $20 billion in Indian investment over 15 years. Negotiations on the agreement began in March 2025.
According to Modi and Luxon, the deal reflects both countries’ “shared ambition and political will to deepen ties.” However, Peters’ comments signal internal political debate in New Zealand, particularly regarding its impact on farmers and the domestic labor market.
Diplomatic Context
Despite his criticism, Peters clarified that he maintains “utmost respect” for Indian External Affairs Minister S. Jaishankar and has conveyed NZF’s concerns directly to him.
