Divisions within NZ coalition government over India Free Trade Agreement
Tuesday, February 10, 2026
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The India FTA, signed in December, aims to lower trade barriers and boost corporate profits, but critics argue it will exacerbate wage competition and deregulation, particularly in the IT sector, with Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon supporting the agreement.
NZ First's opposition to the deal is rooted in xenophobic and nationalist rhetoric, with Peters falsely claiming it will lead to "tens of thousands" of Indian workers taking jobs away from New Zealanders, despite Trade Minister Todd McClay's assurances that the work permits are strictly limited and non-renewable.
The dispute highlights the fragile state of New Zealand's coalition government, with Labour leader Chris Hipkins still undecided on supporting the FTA, and NZ First's popularity rising to 9.8% in recent polls, as the party seeks to exploit growing anger over the cost-of-living crisis and social inequality, according to a report by the World Socialist Web Site.
