ISSUE
Friday, April 17, 2026
Volume 17 . Issue 15
Labour leader Chris Hipkins has confirmed the party will support the proposed India–New Zealand Free Trade Agreement (FTA), paving the way for the legislation needed to implement key aspects of the deal.
Hipkins has written to Prime Minister Christopher Luxon to say Labour would support legislation to pass the India free trade deal, he told the reporters on 23 April.
He said the investment target would not stand in the way of the deal’s passage, but warned businesses to be mindful of the potential for “clawback” provisions from India if it is not met.
Trade Minister Todd McClay is scheduled to travel to New Delhi over the long weekend, where the agreement is expected to be formally signed on 27 April.
Touching on earlier concerns, Chris Hipkins said the Government had committed to allocating legal resources to protect individuals at risk of exploitation and to speed up visa processing times.
However, he said he remained concerned about the $34 billion private sector investment commitment included in the deal, describing it as an “unrealistic target.”
The Labour leader also cautioned businesses to proceed at their own risk and undertake their own due diligence.
“New Zealand businesses need to go into this with their eyes wide open,” he said.
Hipkins, alongside Labour’s trade spokesperson Damien O'Connor, spoke, signalling a shift that breaks months of political deadlock over the agreement.
The government had faced a significant hurdle in advancing the deal, with New Zealand First maintaining firm opposition. That stance meant the governing parties required Labour’s backing to secure enough support in Parliament to pass the necessary legislation.
Labour and National had been at an impasse for several months, primarily over the level of official advice and documentation being shared about the agreement. Concerns around transparency had delayed alignment until now.
Last week, a coalition of exporters and industry associations issued an open letter urging all political parties to support the agreement, highlighting its potential to expand trade opportunities and strengthen economic ties between New Zealand and India.
With Labour now on board, the path appears clearer for the agreement to move forward, marking a step in New Zealand’s trade agenda.
Labour leader Chris Hipkins has confirmed the party will support the proposed India–New Zealand Free Trade Agreement (FTA), paving the way for the legislation needed to implement key aspects of the deal.
Hipkins has written to Prime Minister Christopher Luxon to say Labour would support...
Labour leader Chris Hipkins has confirmed the party will support the proposed India–New Zealand Free Trade Agreement (FTA), paving the way for the legislation needed to implement key aspects of the deal.
Hipkins has written to Prime Minister Christopher Luxon to say Labour would support legislation to pass the India free trade deal, he told the reporters on 23 April.
He said the investment target would not stand in the way of the deal’s passage, but warned businesses to be mindful of the potential for “clawback” provisions from India if it is not met.
Trade Minister Todd McClay is scheduled to travel to New Delhi over the long weekend, where the agreement is expected to be formally signed on 27 April.
Touching on earlier concerns, Chris Hipkins said the Government had committed to allocating legal resources to protect individuals at risk of exploitation and to speed up visa processing times.
However, he said he remained concerned about the $34 billion private sector investment commitment included in the deal, describing it as an “unrealistic target.”
The Labour leader also cautioned businesses to proceed at their own risk and undertake their own due diligence.
“New Zealand businesses need to go into this with their eyes wide open,” he said.
Hipkins, alongside Labour’s trade spokesperson Damien O'Connor, spoke, signalling a shift that breaks months of political deadlock over the agreement.
The government had faced a significant hurdle in advancing the deal, with New Zealand First maintaining firm opposition. That stance meant the governing parties required Labour’s backing to secure enough support in Parliament to pass the necessary legislation.
Labour and National had been at an impasse for several months, primarily over the level of official advice and documentation being shared about the agreement. Concerns around transparency had delayed alignment until now.
Last week, a coalition of exporters and industry associations issued an open letter urging all political parties to support the agreement, highlighting its potential to expand trade opportunities and strengthen economic ties between New Zealand and India.
With Labour now on board, the path appears clearer for the agreement to move forward, marking a step in New Zealand’s trade agenda.
Leave a Comment