New Zealand’s FM Criticizes India FTA: Lacks Fairness and Free Trade

New Zealand's Foreign Minister Winston Peters has voiced strong opposition to the recently introduced India-New Zealand Free Trade Agreement (FTA), denouncing it as “neither free nor fair” and committing to challenge it in Parliament. As the leader of the New Zealand First party, Peters has raised alarms about the potential negative impact of the agreement on vital New Zealand sectors, particularly due to concerns over immigration provisions and the exclusion of essential dairy exports.

In his remarks, Peters emphasized that, while the agreement facilitates access for Indian goods to New Zealand markets, it fails to deliver significant tariff reductions for the dairy industry, which constitutes nearly 30% of the nation’s exports valued at close to $14 billion. Key products such as milk, cheese, and butter are notably excluded from tariff alleviations for the first time in New Zealand's trade history, instilling anxiety among farmers and rural communities who believe their interests are not being safeguarded.

Peters further criticized the extensive labor market access offered to India, noting that New Zealand is providing significantly more per capita access than Australia or the UK in similar agreements. An important concern is the introduction of a new employment visa tailored for Indian nationals. He pointed out that the extended work rights for Indian students during and post their studies might restrict future governmental flexibility in responding to economic changes through immigration and labor policy adjustments.

The Foreign Minister expressed annoyance towards his coalition partner, the National Party, accusing them of hastily agreeing to the deal without securing better conditions for New Zealand. He urged parliamentary members to take the full session to negotiate a more advantageous agreement that presents concrete benefits. Peters also expressed skepticism regarding the likelihood of the agreement receiving majority support in Parliament.

Even amidst his opposition, Peters underscored the significance of fostering and enhancing the strategic ties with India. He reminisced that India was his inaugural international stop as the Foreign Minister beyond the Pacific and reiterated ongoing diplomatic initiatives to strengthen those connections. He asserted that his party’s opposition is rooted in internal coalition differences rather than any critique of India or its negotiation team.

“Our position on trade agreements is steadfast and principled,” Peters affirmed. “We will support agreements that clearly benefit New Zealanders and reject those that do not.”