India FTA: Hipkins says National came to Labour far too late as visa questions mount
Tuesday, 10 February 2026
Labour leader Chris Hipkins has stepped up his criticism of the free trade agreement with India, saying National came to Labour far too late given it knew it would need its support.
The criticism came as Trade Minister Todd McClay clarified on Tuesday morning that New Zealand would still control overall student visa settings under the proposed pact, but would not be able to create new restrictions on Indian student visas specifically.
McClay needs Labour or the Greens’ support for the deal to pass, as NZ First have exercised its “agree to disagree” power over the deal - which leader Winston Peters says gives India too much on immigration without enough access for New Zealand exporters.
The deal allows for an annual 1667 three-year temporary employment entry visas for workers and upgrades or locks in student visa settings that allow students to work while studying and for a set number of years following graduation. There is no cap on student visas from India currently, and the agreement would stop there being a cap implemented in the future.
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Labour have been making supportive noises about the deal, with Hipkins telling media in January Labour was “broadly supportive of securing a trade agreement with India” and that it had faith in the negotiators.
He even suggested the party could agree on the matter that day two weeks ago - but following a caucus meeting said there were still issues to iron out.
Hipkins was more sharply critical of the deal on Tuesday morning, saying it was “irresponsible” of the Government to not involve Labour earlier on in the deal-making process given McClay must have known NZ First would not support it.
“We are trying very hard to find an adult way forward that puts New Zealand's best interests first. I don't think the Government have behaved that way. Going into trade negotiations, knowing you do not have majority support, and making no effort whatsoever to secure that, is irresponsible.”
He specifically queried the ability for future governments to make immigration changes in the country’s interest.
“I think maintaining New Zealand's flexibility around our immigration settings, so that we can act in the best interests of New Zealand is something that is important to us. Having said that the Government have now signed us up to this which potentially does restrict our ability to change the rules in New Zealand's best interests, should that be needed in the future.”
Hipkins reiterated Labour’s criticism that New Zealand’s trade negotiators had their hands tied by Luxon promising to get a deal done in a single term.
McClay: We haven’t asked the Greens
McClay said he had not yet reached out to the Green Party, despite the chance that Labour would not support the deal.
He said there was a “way to go yet” with Labour and conversations were continuing with Labour trade spokesman Damien O’Connor.
“Ultimately, I think the business community wants to have some certainty quite soon.”
McClay said New Zealand retained the ability to change its visa settings, just not to discriminate.
“Ultimately, we have the ability already to change immigration policy to have an effect on the number of students that come here. That has been retained in the agreement. It also suggests that we can’t discriminate, as many trade agreements do.”
He said New Zealand put similar settings in so that India could not offer other countries a better deal on wine imports or similar.
Hipkins said Labour would nail down its position on the deal soon.