'Targeting India alone': NZ minister claims government covertly amending FTA
What's the story
New Zealand's Foreign Minister Winston Peters has criticized the India Free Trade agreement, saying the ruling National Party has "covertly" changed course on migration settings for Indians. He alleged that these changes were made to impose stricter immigration rules on Indian nationals. The FTA, signed in April 2026, is currently awaiting ratification by the New Zealand Parliament.
Warning issued
Immigration officials warned about potential diplomatic fallout
Peters, who leads the right-wing New Zealand First party in a coalition government with the National Party and ACT New Zealand, said immigration officials had cautioned ministers that these changes could hurt ties with India and damage New Zealand's reputation as a business-friendly country. Speaking in Parliament, he said officials had discussed the importance of "not announcing these changes for fear of the Indian reaction - this is bad faith."
Parliament
'We've recently received the evidence...'
"We've recently received the evidence in the form of a briefing from officials and consequent decisions made by the Minister of Immigration...that immigration policy settings are being made more restrictive in a way which targets India and India alone," he said. He quoted from that briefing, saying officials warned Minister of Immigration Erica Stanford that more restrictive settings would "have impacts on...bilateral and trade relations with India and potentially on New Zealand's reputation as a place to do business."
Discrimination claims
National Party accused of keeping India in the dark
Peters claimed that the unannounced modifications would impose a labor market or economic needs test only on Indian citizens and restrict their visa provisions for partners and children. "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," he said.
Rejection
Trade Minister dismisses allegations as 'wrong'
Trade Minister Todd McClay has dismissed Peters's allegations as "wrong." He accused Peters's party of spreading misinformation for political gain. "Whilst they are free to differentiate themselves in respect of the FTA, they should stop promoting misinformation for the sake of gaining votes," he said. McClay said the FTA reflected the strength of the relationship with India and was the start of a "new and exciting chapter."
Work provisions
Highlights of the India-New Zealand FTA
The FTA bill passed its first reading with 93 votes to 29 on Thursday. A first reading debate provides the first chance to debate a bill in the House. The India-New Zealand FTA allows Indian nationals to work temporarily in New Zealand to fill skill gaps but does not provide a pathway to permanent residency. It offers 1,667 annual Temporary Employment Entry visas for Indians and 1,000 Working Holiday visas.