As India and New Zealand seal a long-awaited Free Trade Agreement (FTA), cracks have appeared within New Zealand’s ruling coalition. Winston Peters, Foreign Affairs Minister and leader of coalition partner New Zealand First, has strongly criticised the pact, warning that it could hurt local jobs and leave the country’s crucial dairy sector exposed.
Calling the agreement “neither free nor fair”, Peters said the deal gives away too much while offering little in return for New Zealanders. In a statement, he argued that the government rushed into a “low-quality” agreement instead of using the full parliamentary term to negotiate better terms. According to him, the outcome fails to protect key national interests.
A major flashpoint is dairy. Peters pointed out that New Zealand has opened its market widely to Indian goods, while India has retained tariffs on core dairy exports such as milk, butter and cheese. This, he said, makes the deal difficult to justify to farmers and rural communities. Dairy exports are a cornerstone of New Zealand’s economy, accounting for nearly 30 percent of goods exports and valued at around $24 billion as of November 2025.
The minister also raised concerns over immigration-related concessions included in the FTA. He warned that the agreement offers Indian workers greater access to New Zealand’s labour market, on a per capita basis, than similar deals signed by Australia or the UK. This, Peters said, comes at a time when unemployment pressures are rising at home.
He further flagged risks linked to new employment visas and relaxed rules for Indian students, arguing that these provisions could limit future governments’ ability to respond to changing labour market conditions.
Despite his opposition, Peters stressed that New Zealand First supports closer ties with India. He underlined his long-standing relationship with India’s External Affairs Minister S Jaishankar and clarified that the criticism reflects internal differences within New Zealand’s coalition, not a dispute with India.
The India–New Zealand FTA promises zero-duty access for Indian exports, wider services market entry and greater mobility for students and skilled professionals, while allowing India to protect sensitive sectors such as dairy and agriculture.
