New Delhi: Soon after India and New Zealand announced the conclusion of a comprehensive free trade agreement, a split has emerged in Wellington’s ruling coalition, with Foreign Minister Winston Peters strongly opposing the deal.
Peters, who leads the New Zealand First party — a key partner in Prime Minister Christopher Luxon’s government — called the FTA “neither free nor fair”. He described it as a “bad deal” for New Zealand that gives away too much, especially on immigration, while offering little in return, particularly for the dairy sector.
In a detailed statement, Peters pointed out that New Zealand would fully open its market to Indian products. In contrast, India has not lowered significant tariffs on major New Zealand dairy exports like milk, cheese, and butter.
This marks the first time a New Zealand trade agreement excludes these core products, which make up about 30 per cent of the country’s goods exports.
He also raised worries over concessions on immigration and labour mobility, saying they go beyond those in deals with Australia or the UK. Peters said his party would vote against the enabling legislation in Parliament.
The pact, hailed by both Modi and Luxon as historic, aims to double bilateral trade in five years. It provides duty-free access for all Indian goods to New Zealand and expects around $20 billion in Kiwi investments in India.
Peters clarified that his opposition does not target India, despite the criticism. He remains committed to strong bilateral ties and has informed External Affairs Minister S Jaishankar about his party’s stand.
This disagreement highlights differences within New Zealand’s coalition on trade priorities. The deal now faces a test when it goes for parliamentary approval.