'Bad deal': New Zealand Foreign Minister attacks India FTA, vows to vote it down

Calling the pact ‘a bad deal for New Zealand,’ Peters said the government had rushed into a low-quality agreement rather than using the full parliamentary term to negotiate better outcomes.

New Zealand Foreign Minister Winston Peters launched a sharp attack on the newly announced India-New Zealand Free Trade Agreement (FTA), branding it "neither free nor fair" and warning that his party, New Zealand First, will oppose the deal when it comes before Parliament.

In a strongly worded statement, Peters said his party was "regrettably opposed" to the agreement, arguing that it concedes too much-particularly on immigration-while delivering little in return for New Zealand, especially in the crucial dairy sector.

New Zealand First is regrettably opposed to the India Free Trade Agreement announced today.

We consider the India-New Zealand Free Trade Agreement to be neither free nor fair. Regrettably, this is a bad deal for New Zealand. It gives too much away, especially on immigration,… — Winston Peters (@winstonpeters) December 22, 2025

Calling the pact "a bad deal for New Zealand," Peters said the government had rushed into a low-quality agreement rather than using the full parliamentary term to negotiate better outcomes. "National preferred doing a quick, low-quality deal over doing the hard work necessary to get a fair deal that delivers for both New Zealanders and Indians," he said.

Peters revealed that New Zealand First had repeatedly urged its coalition partner not to conclude the agreement hastily and had warned against signing a deal without certainty of a parliamentary majority. Those concerns, he said, were ignored. As a result, when Cabinet approval was sought last week, New Zealand First invoked the "agree to disagree" clause in the coalition arrangement and made clear it would vote against the enabling legislation.

A central point of contention is dairy. Peters said the India FTA would be New Zealand's first trade deal to exclude major dairy products such as milk, cheese and butter. In the year to November 2025, exports of these products were worth about NZ$24 billion-around 30% of New Zealand's total goods exports. "While New Zealand is completely opening its market to Indian products under this deal, India is not reducing the significant tariff barriers facing our major dairy exports," he said, calling the agreement "impossible to defend to our rural communities."

The Foreign Minister also criticised what he described as serious concessions unrelated to trade, particularly in immigration and labour mobility. On a per capita basis, Peters said, New Zealand had offered India far greater access to its labour market than Australia or the UK did in their FTAs. "This is deeply unwise given New Zealand's current labour market conditions, with too many New Zealanders unemployed or doing it tough economically," he said.

He raised specific concerns about the creation of a new employment visa for Indian citizens and expanded work rights for Indian students, arguing these provisions could fuel migration at a time of tight labour market conditions and tie the hands of future governments in adjusting immigration policy.

Despite his criticism, Peters stressed that New Zealand First remains committed to strengthening ties with India. He said advancing the India-New Zealand relationship is firmly in New Zealand's strategic interests, noting that India was his first overseas visit outside Australia and the Pacific during the current term. He also highlighted increased resources allocated by the Ministry of Foreign Affairs and Trade to deepen bilateral engagement.

Peters underscored his long-standing relationship with India's External Affairs Minister S. Jaishankar, describing him as "an international statesman and champion of New Zealand-India relations," and said New Zealand First had already communicated its position on the FTA to him.

However, he made it clear that respect for the bilateral relationship would not translate into support for the agreement. "The India deal fails the test," Peters said, reiterating that New Zealand First would vote against the legislation if and when it is introduced in Parliament.