The new deals involving Free Trade between India and New Zealand have been heavily criticised by the Foreign Minister, Winston Peters, who has suggested that the new agreement is neither free nor fair and that his Party will cast a no-go vote when it comes to parliament.
On Wednesday, Peters said his party, New Zealand First, was unfortunately opposed to the agreement claiming it is giving too much, especially concerning the immigration, but failing to achieve sufficient benefits in Wellington, especially in the dairy industry that is badly needed.
The opinion of the New Zealand is that this would be a bad deal with the Indian products, but Peters added that even though New Zealand would open her market fully to Indian products, India has not agreed to lower the major tariff barriers to the major dairy products of New Zealand. He presented the result as something that could not be justified to the farmers and the society at large.
According to the Foreign Minister, India FTA would become the first trade agreement that New Zealand would not cover any major dairy products e.g. milk, cheese and butter. In total, the value of dairy exports has been observed to be around 13.94 billion dollars in the year to November 2025 which represents almost 30 per cent of all goods exports of the country.
Peters remarked that the New Zealand First had made numerous pleas with its coalition ally, the National Party, not to enter into an agreement so hastily which it termed as being of a low quality and to allow the greater span of parliament to arrange superior results. He also cautioned against signing the agreement even when there was doubt on whether or not it was going to have a majority in the parliament.
In seeking Cabinet approval of the deal last week, New Zealand First referred to the clause of the coalition arrangements that lets the parties agree to disagree when making it clear that it would vote against the enabling legislation should it be introduced in the Parliament.
Concerns Beyond Trade
Other than trade, Peters highlighted concerns that he termed broad immigration concessions such as the establishment of a new job visa, designed exclusively to favor the Indian citizens. His reasoning was that on a per capita basis, New Zealand had provided India with more access to its labour market than its FTAs with Australia or the United Kingdom had at the time of economic pressures at home.
He further cautioned that increased Indian student work permits during and after studying may limit the future governments to accommodate immigration and labour market environment in the face of new developments.
Even though Peters was against this agreement, he emphasized that New Zealand First was determined to achieve stronger relations with India, and the relationship was of strategic interest. He stated that India was his first foreign visit as Foreign Minister not in Australia or the Pacific and had to add more resources in terms of diplomacy in the relationship.
Peters reportedly personally told the External Affairs Minister of India S Jaishankar of the stance taken by his party, having made it clear that it was not the opinion of India or its negotiators but of the differences that existed within the coalition government of New Zealand.
Peters said that their trade deals policy has been firm and straight, and that New Zealand First would vote in favor of deals that would bring transparent gains to the New Zealand people and vote against the ones that will not.
‘Neither free nor fair’: New Zealand minister opposes trade deal with India
Another area of concerns that Peters created alarm was the expansion of work rights to Indian students, during their learning, and subsequent for those who graduate. He said that such measures will limit the capacity of government of the future to act according to changing labour market demands.
He said the initiatives surrounding the work rights of Indian students would inhibit the power of future governments to adjust their policies in accordance to the changing nature of the labour market.
He further stated that the New Zealand First judges the migration policy with one lens only; whether it keeps the New Zealanders secure in employment and the integrity of the immigration system intact.
Peters said India deal flunks that test.
Another topic that Peters asked about was the political feasibility of the deal as he stated that his party had cautioned National about signing the deal without a definite majority in the parliament.
And with New Zealand First now determined to vote against the legislation, the way through Parliament of the agreement may be clouded once again, as the government moves to enhance economic relations with India.
The criticism points to mounting opposition within New Zealand to the balance between trade agreements and economic growth, protections of labour as well as long term independence especially when entering large fast growing economies such as India.
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