New Zealand Foreign Minister Calls India FTA A 'Bad Deal'

New Zealand’s Foreign Minister Winston Peters has criticised the newly announced India–New Zealand Free Trade Agreement (FTA), branding it “neither free nor fair” and warning that his party will oppose the deal when it is brought before Parliament.

In a statement issued on Wednesday, Peters said his party, New Zealand First, was “regrettably opposed” to the agreement, arguing that it concedes too much — particularly on immigration — while delivering insufficient benefits for Wellington, especially in the crucial dairy sector.

“Regrettably, this is a bad deal for New Zealand,” Peters said. He argued that while New Zealand would fully open its market to Indian goods, India had failed to agree to meaningful reductions in tariff barriers on New Zealand’s major dairy exports. The outcome, he added, was “impossible to defend” to farmers and rural communities.

Peters said the India FTA would be New Zealand’s first trade agreement to exclude key dairy products such as milk, cheese and butter. Dairy exports were valued at about $13.94 billion in the year to November 2025, accounting for nearly 30 per cent of the country’s total goods exports.

He said New Zealand First had repeatedly urged its coalition partner, the National Party, not to rush into what it described as a “low-quality” deal and instead use the full parliamentary term to secure better outcomes. Peters also cautioned against signing the agreement amid uncertainty over whether it would command a majority in Parliament.

When Cabinet approval for the deal was sought last week, New Zealand First invoked the “agree to disagree” provision under coalition arrangements, while making clear it would vote against the enabling legislation if and when it is introduced in Parliament.

Beyond trade, Peters raised concerns over what he described as far-reaching immigration concessions, including the creation of a new employment visa specifically for Indian citizens.

He argued that, on a per capita basis, New Zealand had offered India greater access to its labour market than Australia or the United Kingdom had in their FTAs, despite domestic economic pressures.

He also warned that expanded work rights for Indian students during and after their studies could limit the ability of future governments to adjust immigration and labour market settings in response to changing conditions.

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

Peters said he had personally conveyed his party’s position to India’s External Affairs Minister S Jaishankar, stressing that the opposition was not a criticism of India or its negotiators but reflected differences within New Zealand’s coalition government.

“Our approach to trade deals has been consistent and principled,” Peters said, adding that New Zealand First would back agreements that deliver clear benefits for New Zealanders and oppose those that do not.

(with inputs from NDTV)