New Zealand PM clashes with his own minister for India, says ‘FTA needed at any cost’
Wellington (The Uttam Hindu): The Free Trade Agreement (FTA) between India and New Zealand has triggered political turmoil within New Zealand. While Prime Minister Christopher Luxon strongly welcomed the deal on Saturday, calling it a historic achievement of his government, his own Foreign Minister and coalition partner Winston Peters has openly opposed it. PM Luxon said he has fulfilled his first-term promise of securing an FTA with India and described the agreement as a major gateway to the vast market of 1.4 billion Indian consumers. According to him, the deal will significantly boost jobs, income, and exports for New Zealand.
However, the agreement has exposed deep divisions within New Zealand’s coalition government. Foreign Minister Winston Peters, leader of the New Zealand First (NZF) party, rejected the deal outright, stating that it is neither free nor fair. He alleged that speed was prioritised over quality and claimed his party had already warned against rushing into a weak agreement with India. Peters also said he conveyed his concerns directly to Indian External Affairs Minister S. Jaishankar, while maintaining personal respect for him.
The key points of contention are New Zealand’s dairy sector and visa rules. Peters argued that while New Zealand opened its markets to India, it failed to secure meaningful tariff concessions for dairy products such as milk, cheese, and butter in the Indian market. He said defending this deal before farmers and rural communities would be extremely difficult. Peters also raised concerns over a new visa category for Indian workers, claiming the agreement focuses more on investment and labour movement than on fair trade, potentially threatening local jobs and the integrity of the immigration system.
It is notable that the FTA was announced earlier this week following high-level talks between Prime Minister Narendra Modi and Christopher Luxon. Both leaders expressed confidence that bilateral trade would double within five years and that India could see up to $20 billion in investment over the next 15 years. According to 2024 data, total trade between the two countries stood at $2.07 billion. The Indian government has stated that New Zealand is India’s second-largest trading partner in the Oceania region. However, growing opposition within New Zealand itself has made the agreement politically sensitive.