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# India–New Zealand free trade agreement agreed, parliamentary support uncertain
- URL: https://goodoil.news/india-new-zealand-free-trade-agreement-agreed-parliamentary-support-uncertain/
- Published: 2025-12-23T00:24:34.000Z
- Updated: 2025-12-23T03:22:03.000Z
- Description: NZ First “agree to disagree."
- Author: Centrist
- Tags: News

Summarised by [Centrist](https://centrist.nz/?ref=goodoil.news)

**The government has agreed a comprehensive free trade agreement with India that would eliminate or reduce the majority of tariffs on New Zealand’s exports to the country.**

**NZ First leader Winston Peters said his party had used the coalition’s “agree to disagree” provision and would oppose the enabling legislation, citing concerns over increased visa access for Indian nationals and limited gains for the dairy sector.** 

**Without NZ First’s support, National and Act lack a parliamentary majority. However, Labour has signalled the deal may be “an agreement worth supporting”, despite reservations about dairy access.**

Under the agreement, about 57 percent of exports would be duty-free from day one, rising to 82 percent once fully implemented. The remaining exports would face significant tariff reductions. The deal provides improved access for sectors including meat, forestry, seafood, horticulture, wine, honey, and industrial goods.

> India FTA a bad deal for New Zealand – New Zealand First[https://t.co/evFbbNwfd4](https://t.co/evFbbNwfd4?ref=goodoil.news)
> 
> — New Zealand First (@nzfirst) [December 22, 2025](https://twitter.com/nzfirst/status/2003235358172160208?ref%5Fsrc=twsrc%5Etfw&ref=goodoil.news)

Some high-value dairy products would see tariff reductions, while infant formula tariffs would be phased out over seven years. There is no new access for lower-value milk powder exports, which face prohibitive tariffs. 

The agreement includes a clause allowing New Zealand to seek renegotiation if India offers better dairy access to a comparable economy in future.

> I’ve just spoken with India’s Prime Minister Narendra Modi following the conclusion of the NZ-India Free Trade Agreement.  
>  
> The FTA reduces or removes tariffs on 95% of our exports to India. It’s forecast that NZ exports to India could increase $1.1B to $1.3B per year over the… [pic.twitter.com/FEat7BQWOI](https://t.co/FEat7BQWOI?ref=goodoil.news)
> 
> — Christopher Luxon (@chrisluxonmp) [December 22, 2025](https://twitter.com/chrisluxonmp/status/2002976769977295095?ref%5Fsrc=twsrc%5Etfw&ref=goodoil.news)

The government has also agreed to expand visa access for India, and expand post-study work rights.

Enabling legislation is unlikely to pass before the next election, which could make the deal a campaign issue.

**Read more over at** [**RNZ**](https://www.rnz.co.nz/news/political/582459/government-strikes-free-trade-deal-with-india-rnz-understands?ref=goodoil.news) **and** [**The NZ Herald**](https://www.nzherald.co.nz/nz/politics/watch-nz-agrees-trade-deal-with-india/VQY7WW3DTZEYLCZPQXGP6I3CGA/?ref=goodoil.news)

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