New Zealand Foreign Minister Winston Peters has publicly criticised the recently concluded India–New Zealand Free Trade Agreement, describing it as a low-quality deal that undermines New Zealand’s economic and labour interests. His remarks come just days after India and New Zealand announced the successful conclusion of FTA negotiations, which both governments claim could significantly boost bilateral trade over the next five years.
Peters said his party, New Zealand First, is regrettably opposed to the agreement, arguing that it makes serious concessions on immigration and investment while failing to deliver meaningful benefits for New Zealand’s most important export sectors. He stated that the deal is neither free nor fair and warned that it would be extremely difficult to justify to rural communities, particularly farmers who depend heavily on dairy exports.
One of the most contentious aspects of the agreement, according to Peters, is the exclusion of core dairy products such as milk, cheese and butter. Dairy exports remain central to New Zealand’s economy, accounting for nearly a third of its total goods exports and valued at approximately $24 billion in the year to November 2025. Peters pointed out that while New Zealand is opening its market almost entirely to Indian goods, India has chosen to retain significant tariff barriers on sensitive agricultural products to protect its domestic farmers.
The Indian government has confirmed that market access for dairy and several other items including coffee, sugar, edible oils and rubber has been excluded from the agreement. Despite this, New Zealand Prime Minister Christopher Luxon has defended the deal, stating that it eliminates or reduces tariffs on 95 percent of New Zealand exports to India, with many products becoming duty-free immediately. Luxon has described the agreement as fulfilling a key election promise and opening new opportunities for jobs, exports and long-term economic growth.
India’s leadership has also expressed strong optimism. Prime Minister Narendra Modi called the FTA a historic milestone, noting that it was concluded in just nine months and sets the stage for doubling bilateral trade within five years. He highlighted potential benefits for businesses, innovators, farmers, MSMEs, students and young professionals, along with increased cooperation in education, culture and sports.
Beyond trade, immigration provisions in the agreement have emerged as a major flashpoint. Peters argued that the deal makes concessions that are unrelated to trade, particularly by expanding access for Indian workers and students to New Zealand’s labour market. He claimed that, on a per capita basis, New Zealand has offered more generous labour access than countries such as Australia or the United Kingdom in their respective FTAs with India.
According to Peters, these provisions are risky given New Zealand’s current economic conditions, with rising unemployment and pressure on wages. He also raised concerns about a proposed new employment visa specifically for Indian citizens and expanded work rights for Indian students, warning that such measures could limit the flexibility of future governments to respond to changing labour market needs.
Despite his criticism, Peters stressed that his opposition to the FTA should not be interpreted as hostility toward India. He reiterated New Zealand First’s commitment to strengthening the India–New Zealand relationship, describing it as strategically important. He also noted his respect for India’s leadership and confirmed that his party’s concerns were clearly communicated during diplomatic engagements. As the agreement moves forward, the strong dissent from within New Zealand’s ruling coalition highlights the political and economic complexities surrounding one of the country’s most ambitious trade initiatives with India to date.
