Wellington:
New Zealand’s Foreign Minister Winston Peters has launched a sharp attack on the newly announced India–New Zealand Free Trade Agreement (FTA), branding it “neither free nor fair” and warning that his party will vote against the deal when it is brought before Parliament.
In a statement released on Wednesday, Peters said his party, New Zealand First, was “regrettably opposed” to the agreement, arguing that it makes major concessions without delivering meaningful benefits to New Zealand—particularly in the crucial dairy sector, which remains excluded from the pact.
“Regrettably, this is a bad deal for New Zealand,” Peters said, noting that while Wellington has agreed to open its market to Indian goods, India has not committed to lowering steep tariff barriers on New Zealand’s flagship dairy exports. He described the outcome as “impossible to defend” to farmers and rural communities.
Dairy Exclusion A First For New Zealand Trade Deals
The Foreign Minister said this agreement marks the first time New Zealand has signed an FTA that excludes key dairy products, including milk, cheese and butter. Dairy exports were valued at approximately $13.94 billion in the year to November 2025, accounting for nearly 30 per cent of the country’s total goods exports.
Peters revealed that New Zealand First had repeatedly cautioned its coalition partner, the National Party, against rushing into what it called a “low-quality” agreement. He said the party had urged the government to use the full parliamentary term to secure better outcomes rather than pushing through a deal lacking broad support.
When Cabinet approval for the pact was sought last week, New Zealand First invoked the coalition’s “agree to disagree” clause. Peters confirmed the party will oppose the enabling legislation when it is introduced in Parliament.
Immigration Concessions Raise Red Flags
Beyond trade, Peters voiced strong concerns over what he described as far-reaching immigration commitments embedded in the agreement. These include the creation of a new employment visa specifically for Indian citizens.
He argued that, on a per capita basis, New Zealand has offered India greater labour market access than Australia or the United Kingdom did in their respective FTAs—despite ongoing economic and employment pressures at home.
Peters also warned that expanded work rights for Indian students during and after their studies could limit future governments’ ability to recalibrate immigration and labour policies in response to changing conditions.
Relationship With India Still A Priority
Despite his criticism of the agreement, Peters stressed that New Zealand First remains committed to strengthening ties with India, calling the relationship strategically vital.
He noted that India was his first overseas destination as Foreign Minister outside Australia and the Pacific and pointed to increased diplomatic engagement between the two countries. Peters said he had personally conveyed his party’s position to India’s External Affairs Minister S Jaishankar, clarifying that the opposition was not a reflection on India or its negotiators.
“Our approach to trade deals has been consistent and principled,” Peters said, adding that his party would support agreements that deliver clear and tangible benefits for New Zealanders—and oppose those that do not.