ISLAMABAD: New Zealand Foreign Minister Winston Peters has criticized the newly announced free trade agreement between India and New Zealand, calling it a “bad deal” that gives too much away while offering little in return for New Zealanders in a post on the social media platform X on Monday.
In his statement, Peters said that as a coalition partner, his party was “regrettably opposed” to the agreement, arguing that it was “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,” the statement said.
Peters said New Zealand First had urged its coalition partner not to rush into concluding what it described as a low-quality agreement, and instead to use the full parliamentary term to negotiate better outcomes. He added that the party had warned against signing the deal when a clear parliamentary majority was uncertain.
According to the statement, those warnings were ignored, and a "low-quality deal" was struck over a fair one.
A central concern raised by Peters was the exclusion of major dairy products from the agreement. He said New Zealand was fully opening its market to Indian goods, while India was not reducing tariff barriers on key dairy exports.
“This is not a good deal for New Zealand farmers and is impossible to defend to our rural communities,” the statement said.
The party noted that the agreement would be New Zealand’s first trade deal to exclude major dairy products such as milk, cheese, and butter. It said exports of these products were worth about NZ$24 billion in the year to November 2025, accounting for roughly 30% of total goods exports.
Apart from trade concerns, Peters also criticized what he described as significant concessions on immigration and labor mobility, including the creation of a new employment visa for Indian citizens, warning it could worsen domestic labor market pressures.
He said New Zealand First was concerned the agreement could limit the ability of future governments to adjust migration and student work policies in response to changing economic conditions.
Peters’ remarks come as India faces mounting pressure and criticism in global trade negotiations, including renewed talks with the United States.
Washington imposed steep tariffs on Indian goods earlier this year over New Delhi’s purchases of Russian oil, highlighting the tougher trade environment India is navigating with global partners.
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