New Zealand Foreign Minister and New Zealand First leader Winston Peters has criticised the newly negotiated trade agreement with India, claiming the deal could result in Indian nationals being treated less favourably than citizens of other countries covered by New Zealand free trade agreements.
Speaking during the first reading of legislation to implement the India-New Zealand Free Trade Agreement (FTA), Peters said his party had uncovered evidence suggesting immigration settings were being changed in ways that specifically targeted Indian citizens.
In a statement posted on social media and repeated in Parliament, Peters said New Zealand First had warned for months that the agreement could lead to increased migration from India under existing policy settings. However, he claimed the government had since altered immigration rules in a way that applied only to Indians.
According to Peters, officials had advised ministers that the proposed changes could affect New Zealand’s bilateral relationship with India, damage the country’s reputation as a place to do business, and potentially expose the government to legal challenges.
He alleged the measures would include imposing labour market tests on Indian citizens that do not apply to citizens of other FTA partner countries, preventing Indians from applying for certain temporary work visas while already in New Zealand, restricting pathways for family members, and excluding some work experience from residency requirements.
“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,” Peters said.
New Zealand First opposed the inclusion of migration-related provisions in the agreement and voted against the legislation. Despite that opposition, the bill passed its first reading in Parliament by 93 votes to 29, with support from the governing National Party, Labour and ACT.
Trade Minister Todd McClay rejected 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 New Zealand,” McClay said in a statement. “Whilst they are free to differentiate themselves in respect of the FTA, they should stop promoting misinformation for the sake of gaining votes.”
McClay has previously described the agreement as a “once-in-a-generation” opportunity that would reduce tariffs on 95 per cent of current New Zealand exports to India, with 57 per cent becoming duty-free immediately.
He said the deal would provide exporters with greater access to India’s 1.4 billion consumers, help diversify export markets and contribute to the government’s goal of doubling export value over the next decade.
Labour also backed the legislation. Labour MP Vanushi Walters acknowledged the completion of the agreement and noted it built on work undertaken by the previous Labour government.
The debate highlights growing political divisions in New Zealand over the balance between trade liberalisation and immigration policy, with Peters arguing that any restrictions imposed on Indian citizens should also apply equally to nationals of other countries covered by New Zealand’s free trade agreements.
The India-New Zealand FTA is expected to deepen economic ties between the two countries, but Peters’ intervention has introduced a new point of contention by raising questions about whether Indians will face different migration conditions from citizens of countries such as China, Thailand and South Korea.
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