New Zealand’s Foreign Minister Winston Peters has sharply criticized the newly announced India–New Zealand Free Trade Agreement (FTA), calling it “neither free nor fair” and warning that his party will oppose the deal when it comes before Parliament.
In a statement issued Wednesday, Peters said his party, New Zealand First, was “regrettably opposed” to the agreement, arguing it concedes too much — particularly on immigration — while failing to secure meaningful benefits for New Zealand, especially in the vital dairy sector.
“Regrettably, this is a bad deal for New Zealand,” Peters said. He contended that while New Zealand would fully open its market to Indian goods, India has not agreed to reduce high tariff barriers on key New Zealand dairy exports. That outcome, he said, would be “impossible to defend” to farmers and rural communities.
Peters noted the agreement would be New Zealand’s first trade deal to exclude major dairy products such as milk, cheese and butter. Dairy exports were valued at about $13.94 billion in the year to November 2025, representing 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” agreement and instead use the full parliamentary term to negotiate stronger outcomes. Peters also warned against proceeding with the pact without certainty that it would win majority support in Parliament.
When Cabinet approval for the deal was sought last week, New Zealand First invoked the coalition’s “agree to disagree” provision, while making clear it would vote against the enabling legislation if and when it is introduced.
Concerns beyond trade
Beyond trade issues, Peters raised concerns about what he called 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 have in their FTAs, despite economic pressures at home.
He also warned that expanded work rights for Indian students during and after their studies could limit future governments’ ability to adjust immigration and labour market settings in response to changing conditions.
Despite his opposition, Peters emphasized that New Zealand First remains 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 that New Zealand has increased diplomatic resources devoted to the relationship.
Peters said he has personally conveyed his party’s position to India’s External Affairs Minister S. Jaishankar, stressing that the opposition is not a criticism of India or its negotiators but reflects differences within New Zealand’s coalition government.
“Our approach to trade deals has been consistent and principled,” Peters said. “We will support agreements that deliver clear benefits for New Zealanders and oppose those that do not.”