The recent Free Trade Agreement (FTA) between India and New Zealand has drawn a strong reaction in New Zealand politics. The country’s Foreign Minister and New Zealand First Party leader Winston Peters strongly opposed the deal, calling it “neither free nor fair”. He warned that the agreement was a “bad deal” for New Zealand, with the country making too many concessions without getting significant benefits in return.
‘A bad deal for New Zealand’
In a detailed post on social media platform X, Winston Peters said his New Zealand First party “regretfully” opposes the deal. He alleged that the FTA included major concessions on immigration and investment, while New Zealand did not receive the expected benefits in return, particularly in its main export sectors.
Allegations of loss to dairy farmers
Referring specifically to the dairy sector, Peters said that this agreement is not in the interests of New Zealand farmers. “This is not a good deal for New Zealand farmers and it is impossible to explain to our rural communities,” he said.
More concessions on immigration, less benefits
According to Peters, New Zealand has made excessive concessions in the immigration provisions of the India-New Zealand FTA. He said that the people of New Zealand are not getting enough benefits from this agreement, especially in essential sectors like dairy.
double business expected
Despite criticism from Peters, the governments of India and New Zealand have described the agreement as historic. Both countries say that the FTA can help in doubling bilateral trade in the next five years. According to the New Zealand government, under this agreement, tariffs on 95 percent of New Zealand’s exports to India will be eliminated or reduced, with more than half of the products becoming duty-free from day one. In return, all Indian products will get duty-free access to the New Zealand market. New Zealand has also promised to invest about $20 billion in India in the next 15 years, which is being considered an important step in the economic relations between the two countries.
Prime Minister Luxon calls it a ‘very beneficial agreement’
New Zealand Prime Minister Christopher Luxon defended the FTA, saying it would bring huge and significant benefits. “India’s large size and rapid economic growth presents huge opportunities for New Zealand in terms of employment, exports and economic growth,” he said in a statement. The agreement also fulfills a promise made by Luxon’s National Party during the 2022 elections in which it promised to finalize an FTA with India in its first term.
Disagreements surfaced within the coalition government
Winston Peters’ sharp reaction has made it clear that there are deep differences in the ruling coalition regarding the India-New Zealand FTA. This issue may become even more controversial in New Zealand’s domestic politics in the coming days.
