As India and New Zealand finalised a historic free trade agreement (FTA), not everyone was onboard. New Zealand’s foreign affairs minister Winston Peters voiced his opposition claiming the deal was “neither free nor fair”.“New Zealand First is regrettably opposed to the India Free Trade Agreement announced today. We consider the India-New Zealand Free Trade Agreement to be neither free nor fair. Regrettably, this is a bad deal for New Zealand. It gives too much away, especially on immigration, and does not get enough in return for New Zealanders, including on dairy,” said Peters.
For addressing uncertainity around majority approval from their Parliament, he added, “New Zealand First urged its coalition partner not to rush into concluding a low-quality deal with India, and to use all three years of this Parliamentary cycle in order to get the best possible deal. We also indicated we felt it would be unwise for National to sign up to a deal with India when a Parliamentary majority for that deal was uncertain.“Claiming that his party New Zealand First, part of the coalition that formed the government, had rejected the deal already, Peters also said, “National preferred doing a quick, low-quality deal over doing the hard work necessary to get a fair deal that delivers for both New Zealanders and Indians. When Cabinet approval for the India deal was sought last week, New Zealand First exercised the agree to disagree provision of its coalition arrangements – while making clear that it would vote against enabling legislation if and when it is introduced to Parliament.““While New Zealand is completely opening its market to Indian products under this deal, India is not reducing the significant tariff barriers currently facing our major dairy products. This is not a good deal for New Zealand farmers and is impossible to defend to our rural communities. The India FTA would be New Zealand’s first trade deal to exclude our major dairy products – including milk, cheese and butter. In the year to November 2025, New Zealand exports of these products were worth around $24 billion, or 30% of our total goods exports,” he added.However, he did assure that their opposition to the deal did not mean “critique of the Indian government”, while claiming that his party’s stance has been communicated to external affairs minister S Jaishankar. “We are deeply committed to the advancement of the India-New Zealand relationship, which is in our country’s strategic interests. The first visit we took this term as Foreign Minister outside Australia and the Pacific was to India, and we returned there this year. And at our direction, the Ministry of Foreign Affairs and Trade has significantly increased the resources directed to advancing India-NZ relations, both at our Posts in India and at Head Office in Wellington. We have known S Jaishankar, India’s External Affairs Minister, for a long time, and have the utmost respect for him as an international statesman and champion of New Zealand-India relations. We have communicated to Minister Jaishankar New Zealand First’s position on this matter,” said Giving fe details he said, “We have made clear to him that our opposition to the deal is not a critique of the Government of India or its negotiators – but rather the reflection of a difference of opinion between the parties that comprise New Zealand’s Coalition Government. Whether in government or opposition, New Zealand First’s approach to trade deals has been consistent, longstanding and principled.”“New Zealand First’s longstanding approach has been to support those FTAs that deliver a good deal for New Zealanders and to oppose those that do not,” he clarified, while asserting his stance, citing New Zealands past negotiations with South Korea, China India- New Zealand FTA: SnapshotIndia and New Zealand finalised a landmark Free Trade Agreement (FTA) aimed at deepening bilateral economic ties and expanding trade, investment and mobility. Negotiations began during New Zealand Prime Minister Christopher Luxon’s visit to India in March 2025.A key relief is zero-duty access for Indian exports in New Zealand markets. Labour-intensive sectors such as textiles, apparel, leather and footwear, along with manufacturing segments including engineering, automobiles, electronics, pharmaceuticals and chemicals, are expected to benefit. Services sectors such as IT, finance, education, tourism and construction also gain expanded market access.Also read: Zero duty on 100% Indian exports – what the deal means for trade, MSMEs & Indian workers & studentsThe agreement places strong emphasis on services and mobility. New Zealand has opened 118 services sectors and offered wide MFN treatment. It has also signed, for the first time, annexes on student mobility and post-study work visas, allowing Indian students to work 20 hours a week and access post-study visas of up to four years. New ways have been set in the FTA for skilled professionals, with quotas for temporary employment and working holiday visas for Indian youth.New Zealand also committed to investing $20 billion in India over 15 years, targeting manufacturing, infrastructure, services, innovation and job creation.Agriculture cooperation is another pillar, with improved access for Indian products such as fruits, vegetables, coffee, spices and processed foods, alongside collaboration in agri-technology and productivity. At the same time, India has safeguarded sensitive sectors including dairy, sugar, edible oils, precious metals and select industrial products.
, not everyone was onboard. New Zealand's foreign affairs minister Winston Pet.){kind=link}