New Zealand, India Sign Free-Trade Deal Amid Coalition Disagreement

WELLINGTON: New Zealand announced on Monday that it has reached a wide-ranging free-trade agreement with India, eliminating tariffs on 95 percent of New Zealand’s exports. The deal, set to take effect in the first half of next year, provides unprecedented access to India’s 1.4 billion consumers, according to Trade and Investment Minister Todd McClay.

“This once-in-a-generation agreement creates opportunities New Zealand exporters have never had in India,” McClay said, adding that it “will deliver thousands of jobs and billions in additional exports.” The agreement was a promise made by New Zealand’s National Party-led coalition government in 2024, after the previous Labour administration was unable to finalize a deal with India.

However, Foreign Affairs Minister Winston Peters, leader of coalition partner New Zealand First, criticized the pact, calling it “neither free nor fair.” Peters argued the deal gives too much away, particularly on immigration, and does not provide enough benefits for New Zealanders, especially in the dairy sector.

The agreement includes simplified entry to New Zealand for certain Indian workers, offering 1,667 temporary work visas annually for ICT, engineering, and some health services. It also introduces a working holiday scheme for up to 1,000 people aged 18-30 and allows Indian students to work up to 20 hours per week.

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McClay defended the deal, saying it will help meet labor demands in tourism and rural sectors. “Trade grows the economy and creates jobs — the NZ-India free-trade agreement is about future-proofing opportunities for our exporters and allowing Kiwi companies to continue to punch above their weight on the world stage,” he added.