New Zealand First leader Winston Peters has accused the government of fast-tracking the proposed free trade agreement (FTA) with India for political gain, warning that stronger outcomes could have been achieved with more time.
The deal was announced at the Beehive on Monday by Prime Minister Christopher Luxon and Trade Minister Todd McClay, with the government aiming to finalise it next year. While the agreement includes gains for some industries, benefits for the dairy sector — a key export — remain limited.
New Zealand First leader Winston Peters. Photo: RNZ / Mark Papali
Peters says the agreement has been rushed and is “neither free nor fair”, arguing New Zealand has made excessive concessions.
“This looks like a deal driven by political objectives rather than New Zealand’s economic interests,” he told RNZ, adding that negotiations were originally expected to run for three years from 2023.
With New Zealand First agreeing to disagree with coalition partners National and ACT, the government will need support from opposition parties to pass the deal through Parliament.
Labour is withholding support for now, calling the agreement only a “very small step” forward. Labour trade spokesperson Damien O’Connor said dairy access must be prioritised and criticised Luxon for making the India deal a campaign promise during the 2023 election.
The Greens say they have not been approached for support and want to review the full agreement before taking a position. Te Pāti Māori has ruled out backing the deal altogether, citing a lack of consultation with Māori, weak Treaty protections, limited dairy gains, and concerns over transparency and corporate influence.
Peters also questioned why New Zealand faced conditions not imposed on other countries, pointing to Australia and the UK as examples. He said New Zealand’s market has long been open to India, but the deal fails to deliver fair access in return.
He believes more time at the negotiating table could have delivered better outcomes — particularly for dairy — and says walking away should always remain an option if a fair deal cannot be reached.
RNZ has sought further comment from Trade Minister Todd McClay.