Bipartisanship Restored: Labour Support Clinches India Free Trade Agreement

Chris Hipkins confirms Labour will support the India FTA, despite concerns over a $20 billion investment target, effectively bypassing NZ First's opposition.

By: AXL Media

Published: Apr 23, 2026, 5:56 AM EDT

Source: RNZ Pacific

Bypassing the NZ First Impasse

The deal had been stuck in a political deadlock due to New Zealand First leader Winston Peters’ refusal to support it, citing concerns over immigration. However, with Labour now on board, the legislative path is clear.

Winston Peters reacted sharply to the news, labeling the move a "disgraceful sellout" and an "utter unmitigated disaster." He maintained that NZ First is now the "only party that puts New Zealand and New Zealanders first."

Labour's "Grey Area" Concerns

While backing the deal, Chris Hipkins raised significant concerns regarding a clause in the agreement that "promotes" $20 billion (USD) of New Zealand private sector investment into India over the next 15 years.

The Risk: Hipkins warned that if this "unrealistic" target is not met, India has reserved a legal right to "claw back" the trade concessions granted to New Zealand.