Labour yet to hear from Government about support for India trade deal
Monday, 2 March 2026
Labour leader Chris Hipkins says the Government has not yet responded to his letter setting out conditions for Labour to support the India free trade agreement (FTA) ‒ or even formally asked the party for its vote.
It’s been more than two weeks since Hipkins wrote to Prime Minister Christopher Luxon outlining his bottom lines to signing the deal, including conditions to ensure stronger protections for migrant workers.
It comes after Luxon said on Newstalk ZB on Monday he thought the deal with Labour would get done.
“I think we’ll be able to deal with their issues or concerns along the way I’m sure and I think at the end of the day you’ve got two men who have actually been the trade ministers for the last 11 years in this country who actually understand the opportunities”
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Trade and Investment Minister Todd McClay said he expected to meet with the party later this week, following a constructive meeting with Hipkins and Labour MP, and former trade minister, Damien O’Connor during the last sitting block.
The Government needs the support of Labour or the Green Party to pass the deal in Parliament, as NZ First has engaged the ‘agree-to-disagree’ provision in the coalition agreement and will not be voting for it.
Hipkins said while he was still waiting on a response, he was leaving goodwill on the table.
“We understand there's people keen to find the outcome of this, particularly New Zealand exporters, so we'll move quickly. Really, the ball's in the Government's corner.”
In his letter, Hipkins said Labour was excluded from the negotiations, with the party only giventhe complete text of the agreement more than a month after it concluded and not receiving a formal request to support the deal.
“Your decision not to involve Labour at any point in the negotiation process ‒ without consultation, despite your public assurances to the contrary ‒ and the expectation that Labour would unconditionally support the agreement once presented with it as a fait accompli, falls short of best practice and is not in the spirit of bipartisanship.”
In the letter, Labour sought clarity on the proposed $33 billion of private investment in India over the next 15 years, saying the commitment meant any shortfall could enable India to revoke market access for the apple, honey, and kiwifruit sectors.
Protections over migrant workers included calls to increase the number of immigration compliance officers to guard against migrant exploitation, strengthen the modern slavery bill and action to “decouple” work visas from individual employers to reduce the potential for abuse.