India and New Zealand Set to Sign Free Trade Agreement Amid Controversy
India and New Zealand are on the verge of signing a free trade agreement, but the process has been marred by controversial comments from New Zealand MP Shane Jones. His remarks about a 'butter chicken tsunami' have drawn ire from the Indian community in New Zealand. Prime Minister Christopher Luxon has called the comments inappropriate, while the agreement faces legislative challenges due to opposition from the New Zealand First party. This situation highlights ongoing tensions regarding immigration and trade relations between the two nations. As the agreement approaches, the political landscape remains fraught with challenges and community concerns.
| Apr 23, 2026, 13:10 IST
Upcoming Free Trade Agreement Between India and New Zealand
Next week, India and New Zealand are poised to finalize a free trade agreement, with New Zealand government ministers scheduled to visit New Delhi for the signing. Prior to this, a senior minister from New Zealand made a controversial remark regarding the deal, which has drawn criticism from the Indian community residing in New Zealand. Shane Jones, a member of the New Zealand Parliament, expressed his disdain for the upcoming agreement during a radio interview, stating, 'I don't care how much criticism we face; I will never agree to the impending 'butter chicken tsunami' coming to New Zealand.'
Prime Minister Christopher Luxon deemed these comments inappropriate but refrained from labeling them as racist. The proposed free trade agreement with India is also encountering legislative hurdles, as the ruling party's coalition partner, New Zealand First (of which Jones is the deputy leader), has opposed the agreement.
This situation implies that the National Party will require support from the Labour Party to pass the agreement in Parliament. Jones further asserted that his party would never endorse the free trade agreement, citing concerns over uncontrolled immigration leading to lower wages, traffic congestion, and increased pressure on the healthcare system.
This is not the first instance where Jones has faced backlash from the Indian community in New Zealand. In 2019, during protests against changes to partnership visa regulations, he suggested that community members should return home on the next flight. These changes had made it significantly more challenging for many migrants, particularly Indians, to bring their spouses to New Zealand. Additionally, during the annual meeting of New Zealand First in 2025, Jones exacerbated tensions by commenting on common Indian surnames while speaking before an immigration-related announcement, reflecting on the country's changing demographics.