Winston Peters and Todd McClay. Photo: RNZ / Nick Monro
Trade Minister Todd McClay has confirmed New Zealand First pulled its support for the India free trade agreement (FTA) before it had been officially secured.
National and New Zealand First have been clashing over the deal, with NZ First leader Winston Peters claiming it could mean "tens of thousands of people" arriving onshore and taking opportunities "away from New Zealanders".
National has strongly denied this. Prime Minister Christopher Luxon said Peters was "wrong" about the China FTA and "he's wrong on this one too".
Appearing before a Parliamentary select committee on Thursday morning, McClay clarified the government had agreed to a temporary three-year work permit for 1670 Indian nationals from a number of categories on the country's green list.
"They have the ability to apply for a visa, come and work here for three years, and at the end of the three years, they must return home. They have no right of extension under the FTA.
"It gives them no right to bring a family member to New Zealand under this temporary visa, albeit in New Zealand if you get a visa that is more than one year as a work permit, you do have the ability to bring those people in.
"They don't have the right to work, and a current or future government can look at that and alter it should they choose too. The trade agreement doesn't restrict our ability to do that but it doesn't extend any additional or greater rights."
'Agree to disagree'
Speaking to RNZ afterwards, McClay confirmed NZ First pulled its support for the India FTA before it was secured.
"Before it was concluded and announced," he said.
McClay would not say exactly when National became aware New Zealand First did not back the FTA, only that it was part of a Cabinet conversation.
"We have an agree-to-disagree process that sits amongst all three coalition partners that was used in this case."
Indian Commerce Minister Piyush Goyal and Trade Minister Todd McClay speak to reporters at a press conference in Auckland on 5 November 2025. Photo: RNZ / Blessen Tom
The India FTA will require legislative changes to the Tariff Act, meaning without New Zealand's First's backing National will need Labour to vote for it.
The Labour caucus met on Tuesday morning to discuss concerns around investment and immigration. It is understood those discussions are ongoing.
McClay said he was confident he had done all he could to reach across the political divide and build support for the deal with Labour.
"New Zealand exporters and New Zealand citizens don't want us fighting over things that are good for us internationally.
"You've seen many parties work together on Foreign Affairs and in Trade. I've worked hard to continue that but it's not unreasonable for Labour to want to take a little bit of time to understand the agreement before they come forward.
"I expect that they will support it. The one thing I would say is, I think the New Zealand business community, New Zealand exporters, and the New Zealand Indian population, is pretty keen to hear from them quite soon."
The Taxpayers' Union also weighed in on Thursday, calling for the government to release the paperwork in full to clear up the coalition's internal disagreement.
"Kiwis shouldn't have to rely on hearsay and rumour to work out what their government has committed them to," spokesperson James Ross said.
"When two of New Zealand's most senior politicians are sniping at each other over a deal the public still can't read, it's absurd to not give Kiwis the chance to work out the truth for themselves."
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