Farmers Weekly - 11 February 2026
Labour nears decision on India FTA
The Labour Party is close to disclosing whether it will give the government the support it needs to get its trade agreement with India over the line.
Labour’s position will be set out in a letter to Prime Minister Christopher Luxon as early as this week, according to the party’s trade spokesperson, Damien O’Connor.
“We had another discussion at caucus this morning and [Labour leader] Chris Hipkins will write to Christopher Luxon in the near future just with a couple of queries and our position,” O’Connor told Farmers Weekly on Tuesday.
The National-led government is counting on Labour’s votes after coalition partner NZ First said it would not support enabling legislation that must be passed before the agreement can enter into force and tariff reductions commence.
O’Connor said Labour has had “many” of its questions answered in multiple briefings from Trade Minister Todd McClay and his officials since the agreement was announced on December 22.
Those that remain relate primarily to the ability of future governments to regulate immigration from India.
“We are already a low-wage economy and we don’t want to exacerbate that problem through migration,” O’Connor said.
NZ First leader Winston Peters has fought a running battle with his National Party coalition partners since the deal was announced – claiming it removes the ability of NZ to cap visas for Indian students. Yesterday McClay clarified that the agreement did allow for a cap on student visas – although it could not target Indian students specifically.
O’Connor said the Labour Party needs further clarification.
“Winston Peters is saying a whole lot of things and from what we have been briefed we believe most of them are inaccurate, but we need more clarity on them,” he said.
O’Connor said briefings revealed an agreement shorn of the sorts of protections for the environment, women and workers’ rights and the Treaty of Waitangi that Labour would have insisted on had it been leading the negotiations.
However, this is unlikely to derail Labour’s support for the deal.
“Labour has always supported the progression of trade across the globe and the value of trade agreements.
“But we have also negotiated trade agreements that have widespread value to most New Zealanders and that was reinforced through our Trade for All policy.
“The government is negotiating through a different framework.
“Nonetheless, a trade agreement is generally beneficial to NZ and that is our position.”
Asked how locked in any support from Labour could be when it still has queries outstanding, O’Connor agreed there is still room for it to withdraw its backing.
“That will depend on the government’s response,” he said.
