New Zealand Minister Calls India Trade Deal a “Bad Deal”
New Zealand’s Foreign Minister Winston Peters has sharply criticised the recently concluded India–New Zealand Free Trade Agreement, calling it a “bad deal” and arguing that it does not adequately protect New Zealand’s core economic interests. Peters said the agreement failed to secure meaningful access for key New Zealand exports, particularly dairy products, which remain a sensitive issue in negotiations with India.
Speaking on the agreement, Peters said it was difficult to justify the deal to farmers and rural communities when major exports such as milk, cheese and butter continue to face high tariff barriers in the Indian market. He stated that the pact could not be described as either fully free or fair from New Zealand’s perspective.
Opposition Within New Zealand Government
Peters, who leads the New Zealand First party and is part of the country’s ruling coalition, said his party would oppose the enabling legislation for the agreement when it is brought before Parliament. He argued that while India secured broad access for its exports, New Zealand made concessions without receiving proportional benefits in return.
He also raised concerns over provisions related to labour mobility and investment, claiming they were agreed without sufficient gains for New Zealand’s primary export sectors.
India–New Zealand Trade Context
The free trade agreement was announced by both governments as a step to deepen economic ties and boost bilateral trade. India has consistently protected its domestic dairy sector in trade negotiations, and the agreement reflects this long-standing policy position. Indian officials have described the deal as balanced and mutually beneficial, pointing to expanded market access across multiple sectors.
Broader Political Implications
Peters’ remarks highlight internal political divisions in New Zealand over trade policy and the challenges of negotiating agreements with large emerging economies. While the pact has been welcomed by exporters in some sectors, opposition from within the coalition government signals potential hurdles during the ratification process.
