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PM Christopher Luxon says India ‘very happy’ with FTA progression despite Winston Peters claims

Christopher Luxon and Todd McClay speak about trade and investment
Listen to this article — PM Christopher Luxon says India 'very happy' with FTA progression despite Winston Peters claims

Prime Minister Christopher Luxon insists New Zealand and India are “very happy” with the progression of the free trade deal, despite Winston Peters’ claims India isn’t aware National ministers are “covertly” tightening immigration settings.

Trade Minister Todd McClay said he hasn’t been informed India has any concerns and maintains the deal’s implementation is progressing as expected. He also heralded early benefits for Kiwi exporters.

It comes days before Indian Prime Minister Narendra Modi is due to touch down in New Zealand for a fleeting visit, which occurs while Peters is out of the country as Foreign Affairs Minister.

Speaking to reporters in Auckland today, Luxon and McClay welcomed figures showing New Zealand export volumes to India had increased as the free trade agreement approaches ratification.

“Since negotiations began, [apple] volumes have jumped 63% on the 2024 season, from 27,000 tonnes to 45,000 tonnes so far this year with the season still going,” McClay said.

The same boost had been observed in tourism: “April 2026 saw around 8000 Indian visitors, well up on the same month in previous years.”

The deal would take centre stage during Modi’s visit, which will involve several events on Saturday before he departs later that night.

Trade Minister Todd McClay says he is not aware of any concerns that have been raised by India. Photo / Mark Mitchell
Trade Minister Todd McClay says he is not aware of any concerns that have been raised by India. Photo / Mark Mitchell

The FTA had been in the spotlight in recent weeks, thanks in large part to Peters who claimed National ministers were tightening the immigration settings afforded through the deal without informing the New Zealand public or India.

Peters had pointed to unreleased Cabinet documents he’d seen in his capacity as Foreign Minister to prove his claims.

Immigration Minister Erica Stanford has claimed no final decisions had been made and said she was unaware of what Peters was referring to, but insisted proper process was being followed.

McClay, who had previously rubbished Peters’ claims, dismissed the suggestion the FTA was discriminatory when compared to other deals.

“What it does is honour our obligation as negotiated in the free trade agreement.”

He rejected Peters’ claim of covert changes and said no concerns had been raised by India.

“Questions go backwards and forwards, but nothing I’m aware of.”

Luxon reiterated his minister’s comments: “Both parties [are] very happy with what we’re negotiating.”

Peters would not be in the country at the same time as Modi. The Foreign Minister left on Sunday for engagements in Singapore and Japan. He was expected to return on Sunday.

Luxon said it was not unusual for the Government’s Foreign Minister not to be involved in a prime ministerial visit to New Zealand, despite Luxon meeting with India’s Foreign Minister when he travelled to India to meet with Modi last year.

Asked if it was convenient for him that Peters was out of the country, Luxon told reporters they were “overthinking it a bit”.

“The bottom line is this is a leader-level visit. I am hosting Prime Minister Modi, reciprocating the hosting that he did for me when I went and visited India.”

Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.