India Will Not Open Up Dairy Sector: Commerce Minister
Union Commerce and Industry Minister Piyush Goyal emphasized that India has no intention of liberalizing its dairy sector, as he outlined the specifics of the India–New Zealand Free Trade Agreement (FTA). India and New Zealand have declared the completion of negotiations on a FTA.
During a media briefing, the minister says, "We have been very sensitive to protect all the sectors, like farmers' interest in rice, wheat, dairy, soya and various other farmer products, agricultural products, which have not been opened up with any access. We have also been very conscious of ensuring that our MSMEs and our startup innovators get big opportunities in New Zealand”.
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Under the agreement, India will be granted tariff-free entry into the New Zealand market, while New Zealand will benefit from a substantial decrease in tariffs on 95 percent of its exported goods.
The agreement does not grant entry into India's dairy sector, a politically and economically sensitive area, and certain agricultural products, demonstrating New Delhi's firm stance on these sectors.
The dairy and agricultural industries have been significant points of contention in the highly anticipated trade agreement between India and the US, as Washington aims to expand its presence in Indian markets.
Nevertheless, Goyal indicated that negotiations on this matter are progressing to an advanced phase.
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The previous week, Commerce Secretary Rajesh Agrawal indicated that a comprehensive trade agreement between India and the US is in the final stages of completion and will be officially completed in the near future.
New Zealand's Prime Minister Christopher Luxon lauded the Free Trade Agreement (FTA) as a means to strengthen employment opportunities for New Zealand citizens.
However, Foreign Affairs Minister Winston Peters expressed reservations about the FTA, deeming it a subpar arrangement that his political party, New Zealand First, would resist. Peters, a significant figure within the ruling right-wing coalition government guided by Luxon's National Party, highlighted his party's intention to challenge the agreement due to its perceived shortcomings.
“We consider the India-New Zealand Free Trade Agreement to be neither free nor fair. Regrettably, this is a bad deal for New Zealand. It gives too much away, especially on immigration, and does not get enough in return for New Zealanders, including on dairy”, Peters says.
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“The India FTA would be New Zealand’s first trade deal to exclude our major dairy products – including milk, cheese and butter. In the year to November 2025, New Zealand exports of these products were worth around $24 billion, or 30 per cent of our total goods exports”, he adds.
The agreement is currently pending approval from the New Zealand Parliament. Additionally, Peters stated that his political party, comprised of eight members in the 123-seat House of Representatives, will oppose the deal upon its presentation.
He further emphasized that New Zealand First's disapproval of the agreement does not stem from criticism of the Government of India or its negotiators. Instead, it signifies a divergence of views among the factions that make up New Zealand's coalition government.