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Coalition rift deepens as Winston Peters and National clash over India FTA immigration rules

Auckland (The NZ Today)

Fresh cracks have emerged within the Government coalition after New Zealand First leader Winston Peters on Thursday publicly accused National of quietly changing immigration settings linked to the New Zealand–India Free Trade Agreement (FTA), while National strongly rejected the claims and accused Peters of spreading misinformation.

The disagreement unfolded during Parliament’s first reading of legislation required to implement the landmark trade agreement signed between New Zealand and India earlier this year.

In a strongly-worded speech, Peters alleged the Government was preparing stricter immigration settings that would apply specifically to Indian nationals while attempting to avoid public attention.

He claimed officials had discussed delaying any public announcement because of concerns over how India might react, saying such an approach could damage New Zealand’s reputation as a transparent and trustworthy international partner.

According to Peters, the proposed measures would place additional restrictions on some Indian visa holders that do not apply to nationals from other countries with free trade agreements with New Zealand.

Among the changes he referred to were limits on work rights for partners of certain Indian temporary work visa holders, restrictions on recognising work experience gained under those visas for future residence applications, and requirements for applicants to apply from outside New Zealand.

Peters argued these measures would amount to India being treated differently from other FTA partner countries such as China, South Korea and Thailand.

However, when later asked to publicly release the official briefing he relied upon during his parliamentary speech, Peters declined, saying he was bound by Cabinet confidentiality rules and could not release the document himself.

He maintained that the material had been prepared by government officials and insisted Parliament and the public deserved greater transparency about the proposed immigration settings.

The source of the document also remains unclear. Peters indicated his office had received it last week but did not explain how it came into his possession.

Trade Minister Todd McClay strongly rejected Peters’ allegations, describing them as incorrect and accusing the New Zealand First leader of promoting misinformation for political purposes.

As per RNZ report, the Immigration Minister Erica Stanford’s office has also declined to comment directly, referring media inquiries to the Trade Minister.

As neither Peters nor National has released the document at the centre of the dispute, the claims and counterclaims remain difficult to independently verify.

The disagreement has also exposed growing tensions inside the governing coalition. Peters acknowledged he had not discussed the matter with Prime Minister Christopher Luxon before raising it publicly in Parliament and criticised the Prime Minister for responding by attacking his position rather than addressing the substance of his concerns.

The latest dispute comes only weeks after political debate intensified over the immigration provisions contained in the India-New Zealand Free Trade Agreement.

While the Government has repeatedly said the agreement will strengthen trade and investment ties between the two countries, critics have questioned how some of its immigration commitments will operate once implemented.

The implementing legislation remains before Parliament, with further debate expected in the coming weeks as scrutiny continues over both the trade benefits and the immigration provisions contained within the agreement.

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