New Zealand foreign minister and first leader Winston Peters has accused the National Party-led government of ‘covertly’ introducing immigration changes that unfairly target Indian citizens under the proposed India-New Zealand Free Trade Agreement (FTA), while the government has rejected the allegations as misinformation.In a series of posts on X and later during the first reading of the India FTA legislation in Parliament, Peters claimed the government had made an “abrupt change of course” by introducing immigration settings that “target Indians and Indians alone”.Peters alleged that officials had warned ministers the proposed changes could damage New Zealand’s bilateral relationship with India, hurt the country’s reputation as a place to do business, and expose the government to legal challenges or possible retaliation from New Delhi.“We have also seen evidence of officials discussing the importance of these changes not being publicly announced for fear of the Indian reaction,” he said.According to Peters, the proposed measures include imposing a labour market and economic needs test for Indian citizens that does not apply to nationals of other FTA partner countries, preventing Indians from applying for temporary employment entry visas from within New Zealand, treating Indian citizens differently regarding partners and children, and restricting them from counting work experience gained on temporary employment visas towards residency requirements.He argued that if such restrictions are imposed, they should apply equally to citizens of all countries covered by New Zealand’s free trade agreements.“The Indian Government has the right to know about National’s intention to treat Indian citizens in a discriminatory manner relative to citizens of other FTA partners, such as China, Thailand, or South Korea,” Peters said.On Friday and Saturday, Peters further criticised the agreement, saying New Zealand First had consistently opposed including immigration provisions in any FTA. He claimed the deal would result in “20,000+ more immigrants” rather than the previously cited 5,000 visa holders, arguing that visa holders could bring family members and that uncapped student work rights would further increase migration.He also criticised other provisions of the agreement, including references to the UN Declaration on the Rights of Indigenous Peoples (UNDRIP), commitments linked to the Paris climate agreement, and New Zealand’s pledge to promote billions of dollars of investment into India over the next 15 years.
Government rejects allegations
During Parliament’s first reading of the India-New Zealand FTA Bill, Peters repeated his allegations, saying officials had discussed not announcing the changes publicly “for fear of the Indian reaction”.The bill passed its first reading by 93 votes to 29, with support from National, Labour and ACT, while other parties opposed it.Trade minister Todd McClay dismissed Peters’ claims, saying New Zealand First was “wrong” about the agreement.“They’ve consistently failed to support important trade agreements that are in the best interests of NZ. Whilst they are free to differentiate themselves in respect of the FTA, they should stop promoting misinformation for the sake of gaining votes,” McClay said in a written statement, as reported by RNZ.Earlier in Parliament, McClay described the agreement as a “once in a generation” deal that would reduce tariffs on 95 per cent of current exports to India, with 57 per cent becoming duty-free from the first day.He said the pact would strengthen economic ties with India and help diversify New Zealand’s export markets.
India-New Zealand FTA
India and New Zealand signed the FTA in April this year in the presence of Union commerce minister Piyush Goyal and New Zealand Trade and investment minister Todd McClay.The agreement aims to significantly expand bilateral trade and includes New Zealand’s commitment to invest around $20 billion in India over the next 15 years.The agreement provides duty-free access for all Indian exports to New Zealand and creates a Temporary Employment Entry Visa pathway allowing up to 5,000 Indian professionals in skilled occupations to work in New Zealand for up to three years at any given time.Negotiations on the pact originally began in 2010 before being revived in 2025 and successfully concluded later that year.
