Wellington, New Zealand – New Zealand’s coalition government is facing internal dissent regarding its recently negotiated free trade agreement (FTA) with India, as Winston Peters, the leader of the New Zealand First party and Deputy Prime Minister, has publicly criticized the deal. Peters described the agreement as “rushed” and of “low quality,” raising concerns about its implications for key sectors, particularly dairy and immigration.
The FTA, which was signed in December 2025, aims to enhance trade relations between New Zealand and India, two countries with significant economic potential. New Zealand’s Prime Minister Christopher Luxon has emphasized the importance of the agreement, stating that it could open up new markets for New Zealand exporters and strengthen bilateral ties. However, Peters’ remarks suggest a growing rift within the coalition government, which includes the National Party, New Zealand First, and the ACT Party.
Peters’ criticisms center on the perceived haste with which the agreement was negotiated. He argued that the deal was finalized without adequate consultation with affected industries, particularly the dairy sector, which is a cornerstone of New Zealand’s economy. The dairy industry has long been a point of contention in trade negotiations, as New Zealand is one of the world’s largest exporters of dairy products. Concerns have been raised that the FTA may not provide sufficient protections for local dairy farmers against increased competition from Indian imports.
In addition to dairy, Peters has also voiced concerns regarding immigration provisions included in the FTA. He has argued that the agreement could lead to an influx of workers from India, which he believes may exacerbate existing challenges in the New Zealand labor market. The immigration aspect of the agreement has been a contentious issue, particularly in light of ongoing debates about housing, employment, and social services in New Zealand.
The criticism from Peters comes at a time when the New Zealand government is under pressure to balance economic growth with domestic concerns. The coalition government, which took office in late 2023, has prioritized trade as a means to stimulate the economy in the wake of the COVID-19 pandemic. However, the rapid pace of negotiations and the perceived lack of thorough analysis have raised alarms among some coalition partners and industry stakeholders.
The timeline of the FTA negotiations has been relatively swift. Initial discussions began in early 2024, with both countries expressing a desire to deepen economic ties. By mid-2025, negotiators had reached a framework agreement, and the final deal was signed in December 2025. The agreement includes provisions for tariff reductions, increased market access, and cooperation in various sectors, including technology and agriculture.
The implications of Peters’ criticism extend beyond the immediate political landscape. The FTA with India is seen as a critical component of New Zealand’s broader trade strategy, which aims to diversify its trading partners and reduce reliance on traditional markets. India, with its rapidly growing economy and large consumer base, represents a significant opportunity for New Zealand exporters.
However, the backlash from Peters could complicate the government’s efforts to implement the agreement effectively. If dissent within the coalition continues to grow, it may lead to calls for a reassessment of the FTA or even a delay in its ratification. Such a scenario could undermine New Zealand’s credibility in international trade negotiations and affect its relationships with other trading partners.
The criticism also highlights a broader debate within New Zealand about the balance between free trade and protecting domestic industries. As global trade dynamics continue to evolve, the government faces the challenge of ensuring that trade agreements benefit all sectors of the economy while addressing the concerns of local industries and workers.
In conclusion, the criticism of the FTA with India by Winston Peters underscores the complexities of trade negotiations and the challenges faced by coalition governments in balancing diverse interests. As New Zealand moves forward with its trade agenda, the outcome of this internal dissent will be closely watched by industry stakeholders, political analysts, and international partners alike. The future of the FTA and its potential impact on New Zealand’s economy remains uncertain as the government navigates these challenges.
