New Zealand FM Winston Peters opposed FTA with India, says ‘low-quality deal’

By Anjali Sharma
WASHINGTON –New Zealand Foreign Minister Winston Peters whose New Zealand First is a coalition partner in the National-led government on Tuesday said his country has given too much away in signing the FTA with India, particularly on immigration, he called the agreement a “bad deal” for New Zealand.

He said New Zealand has failed to secure enough in return for the country’s citizens, including on dairy.

Winston Peters has opposed the free trade agreement his country has concluded with India.

Peters, leader of the New Zealand First party wrote on X hours after the deal was announced said that the India-New Zealand Free Trade Agreement is “neither free nor fair”.

He claimed that the New Zealand government should not have agreed to the “low-quality deal with India” in view of the fact that a parliamentary majority for the agreement is uncertain.

“Unfortunately, these pleas went unheeded. 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,” the he wrote.

He argued that while Indian products will get complete access to the New Zealand market, India has retained significant tariff barriers for major dairy products.

“This is not a good deal for New Zealand farmers and is impossible to defend to our rural communities,” Peters claimed.

Peters also took objection to two other aspects of the FTA on skilled mobility and New Zealand investment in India.

“On a per capita basis, National has offered far greater access for India to our labour market than did Australia or the United Kingdom to secure their FTAs… By creating a new employment visa specifically for Indian citizens, it is likely to generate far greater interest in Indian migration to New Zealand at a time when we have a very tight labour market,” he stated.

He concluded that his New Zealand First party is in favor of a strong India-New Zealand relationship and remains committed to its advancement, “which is in our country’s strategic interests”.

Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon announced that the two countries have concluded talks on a comprehensive FTA, and described the deal as “a major economic and strategic milestone”.

The agreement is likely to be inked within three months and implemented in 2026.

The Indian government said the FTA eliminates duty on 100 per cent of Indian exports and secures USD 20 billion investment from New Zealand over the next 15 years.

India has also managed to protect its key interests in dairy and agriculture, securing major concessions on student mobility and post0study work visa for STEM graduates and skilled professionals.

A new visa pathway has also been opened for 5,000 skilled occupations.