New Zealand Foreign Minister Winston Peters has come out strongly against the recently concluded India–New Zealand Free Trade Agreement (FTA), describing it as “neither free nor fair” and warning that it is a bad deal that gives away too much while delivering little in return for New Zealand.
In a post on X, Peters said his party, New Zealand First, was “regrettably opposed” to the agreement, arguing that it makes serious concessions on immigration and investment without securing meaningful gains for New Zealand’s core export sectors, particularly dairy. “This is not a good deal for New Zealand farmers and is impossible to defend to our rural communities,” he said.
The criticism comes even as India and New Zealand announced the conclusion of FTA negotiations, a pact both governments say could help double bilateral trade over the next five years. According to the New Zealand government, the agreement will eliminate or reduce tariffs on 95 per cent of New Zealand’s exports to India, with more than half becoming duty-free from the outset. Indian goods, in turn, will enjoy full duty-free access to the New Zealand market. Wellington has also committed to invest about $20 billion in India over the next 15 years.
Prime Minister Christopher Luxon has defended the deal, saying it offers wide-ranging benefits. In a statement, he said India’s size and rapid economic growth present major opportunities for jobs, exports and investment for New Zealand. The agreement also fulfils a 2022 election promise by Luxon’s National Party to conclude an FTA with India during its first term.
Prime Minister Narendra Modi has similarly welcomed the agreement, calling it a “historic milestone” concluded in just nine months. In a social media post, Modi said the pact sets the stage for doubling bilateral trade within five years and noted that India welcomes more than $20 billion in investment from New Zealand across multiple sectors. He also pointed to expanded opportunities for entrepreneurs, farmers, MSMEs, students and youth, as well as closer cooperation in areas such as education, sports and culture.
Peters, however, has taken issue with both the speed and substance of the negotiations. He said New Zealand First had repeatedly urged its coalition partner not to rush into what it described as a low-quality agreement, but those warnings were ignored. According to Peters, National prioritised speed over securing a balanced outcome that benefits both countries.
A key concern for New Zealand First is dairy. Peters noted that while New Zealand is fully opening its market to Indian products, India has retained high tariff barriers on major New Zealand dairy exports. He pointed out that this would be the country’s first trade agreement to exclude core dairy items such as milk, cheese and butter. In the year to November 2025, exports of these products were valued at around $24 billion, accounting for nearly 30 per cent of New Zealand’s total goods exports.
The Indian government has said dairy and several other sensitive products — including milk, cream, cheese, yoghurt, whey, sugar, coffee, spices, edible oils and rubber — have been excluded from market access commitments to protect domestic farmers and industry. Two-way trade between India and New Zealand stood at about $1.81 billion in 2024, dominated by pharmaceuticals from India and forestry and agricultural products from New Zealand, a relatively small figure compared to India’s overall goods trade of more than $1 trillion in 2024–25.
Immigration provisions in the agreement have also drawn sharp criticism from Peters. He said the concessions made go beyond trade and encourage increased movement of people from India to New Zealand. On a per capita basis, he argued, New Zealand has offered greater labour market access than Australia or the UK did in their FTAs with India.
Peters warned that such measures are ill-timed given current labour market pressures in New Zealand, where unemployment is rising and many households are facing economic stress. He also raised concerns about a proposed new employment visa for Indian nationals, saying it could significantly boost migration at a time when the labour market remains tight. Provisions granting extended work rights to Indian students during and after their studies, he added, could limit the flexibility of future governments.
Despite his opposition, Peters stressed that New Zealand First’s position should not be seen as criticism of India. He said the party remains committed to strengthening the India–New Zealand relationship, which he described as strategically important. Peters noted that his first overseas visit as foreign minister outside Australia and the Pacific was to India, and that Wellington has since increased diplomatic and trade engagement with New Delhi.
He also said he holds “the utmost respect” for External Affairs Minister S Jaishankar and that New Zealand First has clearly communicated its position to him. “Our opposition to this deal is not a criticism of India or its negotiators,” Peters said, “but reflects differences within New Zealand’s coalition government.”