India-NZ FTA: Labour puts forward three conditions for supporting the deal
Labour leader Chris Hipkins. (Samuel Rillstone/RNZ)
Labour leader Chris Hipkins is keeping the government guessing on whether his party will cast the deciding vote for the India–New Zealand free trade agreement (FTA), laying down on Sunday three conditions and accusing Prime Minister Christopher Luxon of mishandling the negotiations.
Labour leader Chris Hipkins is keeping the government guessing on whether his party will cast the deciding vote for the India–New Zealand free trade agreement (FTA), laying down on Sunday three conditions and accusing Prime Minister Christopher Luxon of mishandling the negotiations.
The agreement, finalised in December, cannot be ratified unless Labour backs it because National’s coalition partner, New Zealand First, has already vowed to block the legislation. Hipkins says Labour remains staunchly pro-trade but insists the government must prove the FTA will not harm New Zealand.
Hipkins argued Luxon’s drive to conclude the negotiations quickly has left serious questions unresolved. The Labour leader claims the government “botched” the process by imposing an arbitrary deadline, then emerged with a package that even Foreign Minister Winston Peters refuses to support.
“While the proposed agreement offers some trading opportunities, there appears to be significant risks in the way it is to be implemented in New Zealand,” Hipkins said in a press release on February 15, 2026, citing doubts that private investors could realistically send NZ$33 billion to India over 15 years.
He noted no previous FTA had such a sweeping investment requirement, yet the deal reportedly allows India to suspend market access for apples, honey, and kiwifruit if the target is missed. Labour wants full disclosure of official advice given to ministers to determine what warnings, if any, officials raised about the clause, Hipkins said.
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His other sticking points revolve around migration and education. He warned that any uptick in migrant arrivals generated by the FTA must come with stronger protections against exploitation, stressing Labour “values the people who come here to work and study” but will not accept extra vulnerability in sectors already strained.
Labour also insists that international students covered by the agreement enroll only in legitimate, high-quality courses so that New Zealand’s reputation as a premium education destination is not diluted.
A letter sent to National this week formalized those demands and asked for unredacted briefing papers so Labour MPs can scrutinise what Cabinet has seen.
