Luxon says Peters is wrong about India Free Trade Agreement

The Prime Minister says Winston Peters is "wrong" about what the India Free Trade Agreement might mean for immigration, with the foreign minister raising concerns about comments by Indian politicians celebrating the deal.

Christopher Luxon was asked about concerns by Peters that the deal would lead to an influx of people arriving in New Zealand, putting pressure on the labour market.

Luxon said he and Peters had different views on the deal.

"He opposed the China FTA. He was wrong then, he's wrong on this one too," Luxon said.

The New Zealand First leader criticised the deal when it was announced, withholding his party's support for it, and saying it was a "bad deal" for New Zealand.

The party had concerns around a range of issues, including that National had "offered far greater access" for India to New Zealand's labour market than Australia or the United Kingdom had to secure their FTAs, and called it "deeply unwise".

"By creating a new employment visa specifically for Indian citizens, it is likely to generate far greater interest in Indian migration to New Zealand - at a time when we have a very tight labour market," Peters said in a press release at the time.

Speaking to Herald Now on Wednesday morning, Peters said, "the truth wasn't being told to the public".

"Go and dissect what it means. It means we could have tens of thousands of people getting here of right and building up employment opportunities in this country for themselves and taking those opportunities away from New Zealanders."

Luxon rejected that on Wednesday afternoon, and Trade Minister Todd McClay said there was nothing in the agreement that said "tens of thousands of people from any country have a right to come to New Zealand, none at all."

"It gives no right to any Indians to come to New Zealand if they don't meet their recurrent requirements; the only commitment is 1670 skilled workers we need in the economy."

McClay said the conditions for that entry to New Zealand would be set by cabinet, not the trade agreement.

Peters was asked again about his comments and told that the Prime Minister said he was incorrect.

"Modi does not say I'm incorrect, he says I'm totally correct."

He referred reporters to comments by politicians in India, including that the FTA was being celebrated as "unprecedented", Peters said.

"Go and see what Modi says and see whether Winston Peters is accurately what the Indians are claiming - that they have got an unprecedented deal."

-By RNZ