The Labour Party has confirmed it will support the India free trade deal, giving National and ACT the required numbers to enact it. The agreement – announced in December – was due to be formally signed in New Delhi on Monday but still required Labour’s support to pass through Parliament, given NZ First’s firm opposition. In response, NZ First leader Winston Peters denounced the move as “madness” and a “disgraceful sellout” of the country’s future. Labour leader Chris Hipkins said the party, having now studied the text and legal advice, had agreed to arrive on board. But he said he remained concerned about a commitment in the agreement to promote up to $20 billion (USD) of New Zealand private sector investment over 15 years. In a media conference at Parliament on Thursday, Hipkins said that target was “very unrealistic” and “almost impossible” to achieve. He said Labour would not have agreed to that in negotiations. “India have reserved the right to claw back the concessions they’ve granted… In the event that New Zealand businesses don’t invest $20 billion US in India,” he said. “We’re not going to stop the agreement proceeding because of it, but businesses need to be aware that that is a risk to them.” Labour trade spokesperson Damien O’Connor at today’s briefing. Labour trade spokesperson Damien O’Connor acknowledged the FTA commitment was only to “promote” that level of investment but described it as a “grey area” and “high risk”. “The difference between this agreement and previous ones is that, over time, usually trade agreements reduce the risk for New Zealand exporters and increase the benefits. This one has the potential to do the opposite, but it is… A judgement that I guess the Indians will create.” Asked about any immigration concessions, Hipkins said the deal was unlikely to increase the overall level of migration from India to New Zealand. New Zealand’s opposition Labour Party has announced it will support the proposed free trade agreement (FTA) with India, significantly increasing the likelihood of the deal passing through parliament. The decision comes despite internal disagreements within the current governing coalition, where one partner has expressed opposition to the agreement. Labour leader Chris Hipkins stated that whereas the deal may not fully reflect what his party would have negotiated, Labour recognizes the importance of strengthening New Zealand–India relations. He emphasized the value of the country’s Indian communities and the broader economic and diplomatic benefits tied to the agreement. The New Zealand–India free trade deal, finalized in December, is designed to enhance bilateral trade by eliminating or reducing tariffs on approximately 95% of New Zealand’s exports to India. Notably, more than half of these goods will become duty-free immediately once the agreement takes effect. In return, India will gain full duty-free access to the New Zealand market, creating a more open and competitive trade environment between the two nations. As part of the agreement, New Zealand has also committed to investing $20 billion in India over the next 15 years, further deepening economic ties and supporting long-term growth opportunities. The official signing of the deal is scheduled to grab place in Delhi on Monday. Within New Zealand’s government, the National Party and coalition partner ACT have expressed strong support for the FTA. However, New Zealand First, the third coalition partner, has opposed the agreement, making Labour’s backing essential for ratification. Historically, trade agreements in New Zealand have enjoyed bipartisan support, and industry leaders are urging lawmakers to maintain that tradition. Labour is demanding the Government hand over unredacted advice from officials on its India trade agreement, and to meet a series of conditions before the party will back the deal — as Chris Hipkins accused the PM of presenting him with a “fait accompli”. The potential election-year standoff over the landmark agreement has kicked into gear as Hipkins writes to Christopher Luxon over his party’s support for enabling legislation. In a letter dated February 13, the Labour leader told Luxon the party had not received a formal request to support the deal and that Labour had been provided the full text only more than a month after the agreement had been concluded. “Your decision not to involve Labour at any point in the negotiation process – without consultation, despite your public assurances to the contrary – and the expectation that Labour would unconditionally support the agreement once presented with it as a fait accompli, falls short of best practice,” he wrote. Todd McClay spoke to Q+A’s Jack Tame in February 2026 on the newly-negotiated free trade agreement with one of the world’s most populous countries. (Source: Q and A) Hipkins told media the “agreement offers some trading opportunities [but] there appears to be significant risks in the way it is to be implemented in New Zealand.” “Now that we have had the opportunity to scrutinise the agreement, we have written to National setting out the conditions that must be met before we will consider supporting the agreement.” Chris Hipkins noted Prime Minister Christopher Luxon was committed to a deal one of his coalition partners had refused to support. (Source: 1News) Labour’s decision on whether to support the landmark free trade agreement was critical, as Government coalition partner Winston Peters and NZ First have opposed the deal. This means National and ACT need Labour’s support to move the deal forward….
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