New Zealand foreign minister Winston Peters has opposed the newly announced free trade agreement (FTA) between New Delhi and Wellington, calling it a “bad deal” that gives away too much while delivering too little in return.

"We consider the India-New Zealand Free Trade Agreement to be neither free nor fair," Peters wrote on X, arguing that the agreement failed to protect New Zealand’s economic and labour interests.

Peters, who is also leader of the New Zealand First party and a coalition partner in the government, accused the National-led government of prioritising speed over substance.

Peters said his New Zealand First party was “regrettably opposed” to the deal and would vote against its enabling legislation when it comes before Parliament.

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

"Regrettably, this is a bad deal for New Zealand. It gives too much away, especially on immigration, and does not get enough in return for New Zealanders, including on dairy."

Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon on 22 December announced that both countries have concluded discussions on a comprehensive FTA, calling it “a major economic and strategic milestone” for India in the Indo-Pacific region.

The agreement is expected to be signed within three months and implemented in 2026.

Concerns over dairy access and market imbalance

Peters said the agreement disproportionately benefits India while leaving New Zealand’s key export sectors exposed.

"While New Zealand is completely opening its market to Indian products under this deal, India is not reducing the significant tariff barriers currently facing our major dairy products."

"This is not a good deal for New Zealand farmers and is impossible to defend to our rural communities."

"The India FTA would be New Zealand’s first trade deal to exclude our major dairy products - including milk, cheese and butter. In the year to November 2025, New Zealand exports of these products were worth around $24 billion, or 30% of our total goods exports."

Earlier on Monday, commerce minister Piyush Goyal said India will never open up the dairy sector to free trade, according to Reuters.

Immigration and labour mobility objections

Peters criticised what he called “serious concessions” made by New Zealand in areas unrelated to two-way commerce, particularly immigration and labour mobility.

"National has also made serious concessions to India in areas that have nothing to do with two-way trade - but rather relate to encouraging the movement of people from India to New Zealand and New Zealand investment in India."

"On a per capita basis, National has offered far greater access for India to our labour market than did Australia or the United Kingdom to secure their FTAs. This is deeply unwise given New Zealand’s current labour market conditions, with too many New Zealanders in unemployment or doing it tough economically."

He also raised concerns about the creation of a new employment visa specifically for Indian citizens.

"By creating a new employment visa specifically for Indian citizens, it is likely to generate far greater interest in Indian migration to New Zealand – at a time when we have a very tight labour market."

Warning on future policy constraints

Peters warned the agreement could limit the flexibility of future governments.

"We also hold concerns that the deal ties the hands of future New Zealand Governments. The proposals around the work rights for Indian students, both when they study and after they graduate, would constrain the ability of future governments to make policy changes in response to changing labour market conditions."

Coalition tensions over rushed negotiations

Peters said New Zealand First had urged the government to take more time to negotiate better terms.

"New Zealand First urged its coalition partner not to rush into concluding a low-quality deal with India, and to use all three years of this Parliamentary cycle in order to get the best possible deal."

"Unfortunately, these pleas went unheeded. 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."

"When Cabinet approval for the India deal was sought last week, New Zealand First exercised the agree to disagree provision of its coalition arrangements – while making clear that it would vote against enabling legislation if and when it is introduced to Parliament."

Commitment to India-New Zealand ties remains

Despite his strong opposition to the FTA, Peters said his party remained committed to strengthening bilateral relations with India.

"New Zealand First’s position on the India deal takes nothing away from its efforts to advance the India-New Zealand relationship."

"We are deeply committed to the advancement of the India-New Zealand relationship, which is in our country’s strategic interests."

He highlighted his personal engagement with India and respect for its leadership.

"The first visit we took this term as Foreign Minister outside Australia and the Pacific was to India, and we returned there this year."

"We have known S. Jaishankar, India’s External Affairs Minister, for a long time, and have the utmost respect for him as an international statesman and champion of New Zealand-India relations. We have communicated to Minister Jaishankar New Zealand First’s position on this matter."