New Zealand says agreed free trade deal with India

New Zealand said Monday it had agreed a wide-ranging free-trade deal with India that eliminates tariffs on 95 percent of the Pacific country's exports, but the government's coalition partner labelled it a bad agreement.

Trade and investment minister Todd McClay said the deal, which comes into effect in the first half of next year, gave unprecedented access to India's 1.4 billion consumers.

"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".

New Zealand's conservative National Party-led coalition government made a promise in 2024 that it would negotiate a deal with India, after the previous, left-leaning Labour administration was unable to get one across the line.

However, Foreign Affairs Minister Winston Peters, the leader of coalition partner New Zealand First, warned the pact was "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."

The deal includes simplified entry to New Zealand for some Indian workers, including 1,667 temporary work visas each year for the information and communications technology sector, engineering and some health services.

It also includes a working holiday scheme allowing up to 1,000 people aged 18-30, and allows Indian students to work for up to 20 hours a week.

"New Zealand First urged its coalition partner not to rush into concluding a low-quality deal with India," Peters said. "Unfortunately, these pleas went unheeded."

But McClay said it ensured New Zealand has tourism and rural-sector workers.

"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.