New Zealand Foreign Minister Opposes India FTA: Calls It Unfair

New Zealand Foreign Minister Winston Peters has condemned the newly signed Free Trade Agreement (FTA) between India and New Zealand. He has termed it ‘’Neither Free nor Fair’’ and ‘’Bad Deal’’ for his nation.

Peters, who heads the nationalist New Zealand First Party and is a key partner in the ruling coalition, stated that the agreement features multiple concessions, mainly on immigration, and has failed to secure a deal for the dairy industry.

In his post on X, he said, "This gives away too much and does not offer enough in return for New Zealanders."

India-New Zealand FTA Could Double Bilateral Trade in 5 Years

The recent announcement by both governments regarding the completion of negotiations on the FTA, which, according to them, would scale up bilateral trade within five years.

According to New Zealand’s government, the deal would result in a reduction of tariffs on 95% of New Zealand's exports to India, while Indian products will enter New Zealand duty-free.

The country has promised to make $20 billion investment in India over the next 15 years.

For Prime Minister Christopher Luxon, this agreement is a positive step as it will promote job opportunities for New Zealand youths.

Prime Minister Narendra Modi also called it a ‘Historic Milestone’ achieved in nine months.

NZ Foreign Minister Claims India Trade Deal Was Rushed Through

Amid so much optimism, the NZ Foreign Minister has raised grave concerns and complained about the hurried deal.

New Zealand first requested that the government take enough time and negotiate on better terms. But the requests were overlooked.

His major concern was about dairy, which is New Zealand’s largest export sector, worth $24 billion annually.

While New Zealand is completely open about its market to Indian goods, India, on the other hand, is not trimming the tariff barrier on dairy items like milk, butter, and cheese.

This would result in New Zealand’s first trade deal in the removal of core dairy products, which, according to Peters, is not possible as it is unacceptable for the rural communities.

Regarding immigration provisions in the deal, Peters has condemned it. He mentioned serious concessions made by New Zealand that aren’t related to trade.

He also argued that the agreement fosters excess migration from India to New Zealand when there is a higher unemployment rate.

Peters also questioned the new employment visa, especially for Indian citizens and expanded work rights for students from India.

Peters Clarifies Opposition Not Against India, Stresses Commitment to Strong Ties

The New Zealand Foreign Minister has said that his opposition is not targeting India or questioning its leadership.

He is only concerned about deep commitment to bolstering relations between India and New Zealand.

Peters further added that he has a great respect for Indian External Affairs Minister S Jaishankar.

He explained that the disagreement is simply between the coalition partners within New Zealand’s government and about the goodwill of their country.

FAQs

Q: Who benefits most from the India-New Zealand FTA?

A: Even though the India-New Zealand FTA is beneficial for both nations, it's the New Zealand exporters who are more advantaged, with 95% of their exports to India, as they see lower tariffs, with over half being duty-free. Indian exporters also benefit from duty-free access to New Zealand goods.

Q: What is the Indo-Pacific strategy of India and New Zealand?

A: The Indo-Pacific strategy of India and New Zealand emphasises peace, economic growth, and stability in the region. Both nations aim to enhance maritime security, diplomatic cooperation, and trade ties.

Q: What is New Zealand-India foreign policy?

A: The New Zealand-India foreign policy puts focus on diplomatic, trade, and emphasis on trade, education, climate, and technology, and wants to make things easier for Indian students and professionals.

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