Who is Winston Peters—and why is he attacking India–New Zealand trade deal?

“We consider the India–New Zealand Free Trade Agreement to be neither free nor fair,” Peters wrote in a post on X.

In a detailed statement, Peters said the agreement gives away too much while offering limited benefits in return.

“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,” he said.

Peters said his party, New Zealand First, had urged its coalition partner not to rush into finalising what he described as a low-quality agreement.

“We urged National not to rush into concluding a low-quality deal with India and to use the full three years of this parliamentary cycle to secure the best possible outcome. We also indicated that it would be unwise to sign up to a deal when a parliamentary majority for it was uncertain,” he said.

However, Peters claimed those warnings were ignored.

“Unfortunately, these pleas went unheeded. National preferred doing a quick, low-quality deal over doing the hard work necessary to achieve a fair agreement that delivers for both New Zealanders and Indians,” he added.

The Foreign Minister said the FTA fails New Zealand’s rural sector and is difficult to defend to farming communities.

“The India FTA would be New Zealand’s first trade agreement to exclude our major dairy products, including milk, cheese and butter. In the year to November 2025, exports of these products were worth around NZD 24 billion, accounting for nearly 30 per cent of our total goods exports,” Peters said.

He also criticised concessions unrelated to trade.

“National has 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,” he said.

Peters further warned that the deal opens New Zealand’s labour market excessively.

“On a per-capita basis, National has offered far greater access to India than Australia or the United Kingdom did in their FTAs. This is deeply unwise given New Zealand’s current labour market conditions, with too many New Zealanders unemployed or struggling economically,” he said.

‘Huge gains ahead,’ says Luxon

In sharp contrast, Prime Minister Christopher Luxon welcomed the agreement, describing it as “excellent” and a major opportunity for New Zealand exporters.

In a post on X, Luxon said the FTA would reduce or eliminate tariffs on 95 per cent of New Zealand’s exports to India.

“Based on New Zealand’s growth in trade following other FTAs, the potential gain for our exporters and our economy from this agreement is huge,” he said.

Luxon noted that trade currently supports one in four jobs in New Zealand and said the agreement would further strengthen the economy by backing farmers, growers, manufacturers and exporters.

“This agreement backs our businesses to compete on the world stage. When we trade with the world, we grow our economy at home — creating more jobs, attracting investment and lifting wages for Kiwis,” he said.

Modi–Luxon conversation

Earlier on Tuesday, Prime Minister Narendra Modi held a telephone conversation with Luxon, during which the two leaders jointly announced the conclusion of the India–New Zealand FTA.

According to a statement from the Prime Minister’s Office (PMO), negotiations were launched during Luxon’s visit to India in March 2025 and were concluded in a record nine months.

“The conclusion of the FTA reflects the shared ambition and strong political will of both countries to further deepen bilateral ties,” the PMO said.

The agreement is expected to significantly boost economic engagement by improving market access, enhancing investment flows, strengthening strategic cooperation, and creating new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth in both countries.

With the FTA providing a strong foundation, both leaders expressed confidence in doubling bilateral trade within five years and attracting USD 20 billion in New Zealand investment into India over the next 15 years.