New Zealand’s Foreign Minister Criticizes India FTA: “Unfair Deal”

Post by : Mina Rahman

Winston Peters, New Zealand’s Foreign Minister, has expressed strong disapproval of the recently forged India-New Zealand Free Trade Agreement (FTA), branding it as “unfair” and “not free.” He indicated plans to contest the agreement during its presentation in Parliament. As head of the New Zealand First party, Peters voiced concerns that the deal jeopardizes significant New Zealand industries and poses risks related to immigration provisions and the exclusion of essential dairy exports.

In his remarks, Peters noted that although the agreement allows Indian goods access to New Zealand markets, it does not provide substantial tariff reductions for the dairy industry—a critical sector that accounts for around 30% of the nation's total exports, valued at nearly $14 billion. Notably, key items like milk, cheese, and butter are not included in the tariff reductions, marking an unprecedented exclusion in New Zealand’s trade deals. This has raised alarms among farmers and rural communities, who believe their interests are not safeguarded.

Peters further criticized the extensive labor market access allotted to India, explaining that New Zealand’s concessions per capita exceed those made by Australia or the UK in their trade pacts. Noteworthy is the introduction of a novel employment visa tailored for Indian citizens, which has become a focal point of contention. He pointed out that enhanced work rights for Indian students, both during and after their education, could limit the flexibility of future governments in adjusting immigration and labor policies as economic circumstances evolve.

The Foreign Minister expressed disappointment with his coalition partner, the National Party, accusing them of hastily concluding a deal that lacks better terms for New Zealand. He urged parliamentarians to devote the full parliamentary term to pursuing a more advantageous agreement that could provide real benefits. Peters also expressed skepticism regarding the likelihood of the deal achieving majority backing in Parliament.

Despite his criticisms, Peters emphasized the necessity of nurturing and advancing the strategic relationship with India. He recalled that India was his inaugural international visit as Foreign Minister beyond the Pacific area, underscoring continuous diplomatic initiatives aimed at bolstering connections. He clarified that his party’s stance signifies internal differences within the coalition government rather than a critique of India or its negotiating teams.

“Our approach to trade agreements is unwavering and principled,” Peters affirmed. “We will support agreements that indisputably benefit New Zealanders and challenge those that do not.”