Politics

The PM tells off his own coalition partner over India trade deal comments

Hana SinclairPublished 2w ago4 min readBased on 8 sources
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The PM tells off his own coalition partner over India trade deal comments

Prime Minister Christopher Luxon has called comments by NZ First deputy leader Shane Jones about the India free trade agreement "crass and unprofessional."

It is unusual for a prime minister to publicly tell off a senior figure from a partner party in government. Luxon was speaking on RNZ's Morning Report.

He was responding to remarks Jones made at the NZ First annual convention the weekend before. Jones told the gathering he would "call out" the levels of Indian migration into New Zealand "every day, every week, every month."

Jones went further, naming specific industries. "It is not foundational Kiwi culture to have foreigners running slave gangs in our kiwifruit industry, never paying tax, owing more to the IRD than the GDP of Kaitaia," he said. "Put them on the first plane and send them home."

Jones also told the leaders of Labour, National, ACT and the Green Party to "take off your knee pads" for attending what he called an "ethno-nationalist rally" to welcome Indian Prime Minister Narendra Modi. (RNZ)

A free trade agreement, or FTA, is a deal between countries that cuts or removes taxes on goods traded across their borders, making exports cheaper. Luxon said NZ First's opposition to the India FTA was "hypocritical," because NZ First Associate Agriculture Minister Mark Patterson was in India selling tariff-free New Zealand wool under the same agreement. (RNZ)

NZ First does not support the FTA. The party says it is concerned about immigration and questions whether the $34 billion investment promotion clause in the agreement is a real commitment with consequences.

The argument is the sharpest public split in the coalition so far. The relationship has been strained over the India deal for months. In February, Luxon called his disagreement with NZ First leader Winston Peters a "mature disagreement." (RNZ) Peters had earlier said the FTA was "for political purposes." (RNZ)

The agreement removes taxes on 95 per cent of New Zealand's exports to India, according to Beehive announcements. (Beehive) Luxon's office called the deal "a landmark moment for New Zealand" in a press release last December. (Beehive) Legal checks were completed and a signing date agreed in April. Jones himself was listed among the ministers tagged on that announcement. (Beehive)

Formal negotiations for a broader FTA were launched by Luxon and Trade and Investment Minister Todd McClay in March 2025. (Beehive)

The same day Luxon rebuked Jones, the latest RNZ-Reid Research poll put National at 28.7 per cent. That is the party's lowest result since Luxon became leader and a fourth drop in a row. Asked about the result, Luxon said: "I don't talk about your poll." (RNZ)

In New Zealand's coalition system, two or more parties join forces to form a government. That means partners sometimes disagree publicly, as they are still separate parties with their own policies. This dispute has gone from a disagreement between party leaders to the prime minister telling off a deputy leader, which is a step up in tension.

For NZ First, the convention speech suggests the party is pushing its anti-immigration stance to stand apart from its coalition partners. Jones's language, especially the talk of "foundational Kiwi culture" and sending people home, goes well beyond the party's stated policy concerns about the FTA's investment and immigration rules. Whether that gap between what Jones says and what the party's actual policy is widens or narrows before the FTA signing will shape what happens next in the coalition.

For National, the poll result adds to the pressure. A fourth drop in a row to 28.7 per cent puts the party in territory where backbench MPs may start getting restless. Luxon's dismissal of the question on Morning Report suggests he is not yet willing to talk publicly about that trend.