Dairy major hurdle in NZ-India FTA talks: New Zealand’s Deputy PM Winston Peters

The Free Trade Agreement (FTA) talks between India and New Zealand are currently hindered by concerns regarding the opening of India’s billion-strong dairy market to New Zealand.

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During an event in New Delhi on Friday, New Zealand’s Deputy Prime Minister and Foreign Minister, Winston Peters, emphasised that the dairy industry remains a significant barrier to finalising the FTA. He expressed hopes of selling premium milk products in the vast Indian market, stating, “This (the dairy industry) is a full-scale barrier. Give us a chance; we will take one province and steer the industry. We can be of great help. You will see cooperation is the best plan.”

He said the dairy industry is an issue which New Zealand had been discussing with India under the trade talks.

In 2023, New Zealand’s dairy sector generated nearly $26 billion in export revenues, with its primary exports being butter, milk powder, and cheese.

India’s dairy market is substantial, characterised by thousands of farmers organised into cooperatives, producing small quantities in an unorganised manner. Most of the dairy produce is consumed domestically, with minimal exports. Peters recognised that tariff-free access to India’s dairy sector under the proposed trade pact is a “concern” and noted that he “cannot put a timeline” on resolving this issue.

Earlier, Peters, who is on a two-day visit to India, met External Affairs Minister S Jaishankar to discuss the progress in the bilateral ties post the visit of their Prime Minister Christopher Luxon to India in March this year. Both sides had then agreed to conclude the negotiations in a span of three months.

“We see opportunities everywhere if we can get this across the line. We are not in it to enrich ourselves. We are in it to enrich both,” said Peters.

He also said New Zealand can help India in “driving up the productivity” of India’s dairy industry by way of “better performance, better breeding, better outcomes and better production.”

Earlier this year during the visit of PM Luxon both sides relaunched the negotiations for the FTA.

Peters highlighted that “For New Zealand, India presents immense untapped potential. Despite India’s economic scale, it remains only our 12th largest trading partner, accounting for just 1.5 percent of our exports.” He also acknowledged India’s rise as a geopolitical giant, stating, “In an increasingly multipolar world, India’s emergence as a geopolitical giant and a vital security actor both regionally and globally.”

He also held a meeting with Union Minister of Health and Family Welfare JP Nadda and also with Leader of Opposition in Parliament Rahul Gandhi, who along with Gaurav Gogoi, Deputy Leader of Lok Sabha, met him in New Delhi.