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), according to a report by Business Today. The government has rejected the allegations as misinformation.
Allegations of Covert Immigration Changes
In a series of posts on X and 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", as reported by Business Today. 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," Peters said, according to the source.
The alleged 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
- Restricting them from counting work experience gained on temporary employment visas towards residency requirements
Peters 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," he said, as quoted by Business Today.
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.
Government Rejects Claims
During Parliament's first reading of the India-New Zealand FTA Bill, Peters repeated his allegations. 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 via Business Today.
FTA Details and Parliamentary Progress
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, according to Business Today. 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.
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.
| FTA Provision | Detail Source (Business Today) |
|---|---|
| Tariff reduction | 95% of current exports to India; 57% duty-free from day one |
| Investment commitment | NZ to invest ~$20 billion in India over 15 years |
| Immigration (disputed) | Alleged discriminatory measures targeting Indian citizens; rejected by government |
For importers and exporters, the FTA's tariff reductions on 95% of New Zealand's exports to India, with over half duty-free immediately, represent a significant market access improvement. However, the immigration controversy could create uncertainty around the agreement's full implementation, even as the bill advances through Parliament.
Sources:
