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North Asia’s economic prosperity and political stability is crucial to New Zealand. The New Zealand government has devoted considerable effort and resources over the past 25 years to developing trade and political relationships in North Asia.
As the economies of North Asia develop and mature, New Zealand is continually looking for new opportunities and initiatives for cooperation. Investment, science and technology, tourism and education cooperation are examples of current activities underway between New Zealand and North Asia in support of the government’s ETA.
We work closely with North Asian countries in a number of international and regional organisations, such as APEC and the Asia Regional Forum (ARF) as well as the UN. We have diplomatic posts in Tokyo, Beijing, Seoul, Shanghai and Hong Kong. New Zealand also has significant economic and cultural ties with Taiwan. These are managed by the New Zealand Commerce and Industry Office (NZCIO) in Taipei, which is a subsidiary of the Wellington Regional Chamber of Commerce. We also manage relations with Mongolia and Macau through our Embassy in China, and the Democratic People’s Republic of Korea ( North Korea) from our Embassy in Seoul.
The shift of economic influence to Asia over recent years has three key North Asian countries - Japan, China and the Republic of Korea - at its centre. These three are increasingly important for New Zealand as economic and trading partners, and their weight in international political and regional strategic affairs is growing. China in particular is growing rapidly in importance both bilaterally and regionally.
Japan, China and the Republic of Korea are respectively our third, fourth and seventh largest trading partners. Together with Taiwan and the Hong Kong Special Administrative Region they account for a quarter of New Zealand’s merchandise exports ($7.7 billion) and a quarter of imports ($8 billion). New Zealand and North Asia are natural trading partners with primary produce from New Zealand being exchanged for manufactured goods from North Asia. In addition, three quarters of international students in New Zealand come from North Asia along with 20% of tourists and 10% of international investment.
New Zealand’s position in Asia is examined in the Ministry of Foreign Affairs and Trade Statement of Intent. (PDF 408KB)
To subscribe to newsletters produced by New Zealand posts in Tokyo, Seoul, Beijing, Shanghai and Hong Kong or the New Zealand Commerce and Industry Office in Taipei, please send your email address to: nad@mft.govt.nz
Japan is an important global player and a major bilateral partner of New Zealand. Both countries are members of regional Asia/Pacific cooperation bodies such APEC, the East Asia Summit and the ASEAN + 6 process and often cooperate on the basis of common objectives. Japan's global and regional influence is underpinned by its commitment to democracy and the rule of international law, its strong alliance with the US and its large, well advanced economy.
On the global stage, particularly at the United Nations, New Zealand and Japan share similar views across the spectrum of global issues. These include
New Zealand and Japan contributed to humanitarian and reconstruction assistance in South Iraq; both are members of Operation Enduring Freedom in Afghanistan; and both contributed to the security of Timor Leste. Japan and New Zealand also share similar views on counter-terrorism, and strongly support UN-mandated peacekeeping operations and the systemic importance of UN mandates
Both countries are strong supporters of the Kyoto Protocol; we share common interests in most aspects of the biodiversity agenda; we have similar views on international environmental governance; and we are both keen to see practical results at the Commission on Sustainable Development
New Zealand and Japan are close dialogue partners at the United Nations in New York and Geneva, including in the areas of women rights, rights of the disabled, and the Human Rights Council. New Zealand supported Japan’s successful candidature for the committee of the new Human Rights Council.
New Zealand and Japan share a mutual interest in keeping Iran engaged in a multilateral (IAEA) verification process. Both countries favour the abolition of chemical and biological weapons, and the entry into force of the comprehensive (nuclear) test ban treaty.
Japan is also an important trade and economic partner for New Zealand. It is New Zealand's third largest trading partner and sixth largest source of foreign direct investment. Japan is New Zealand's biggest single market for forest products, aluminium, vegetables and kiwifruit. Japanese tourists and students also make an important contribution to the New Zealand economy. In the global trade arena, Japan and New Zealand both want ambitious outcomes at the WTO Doha negotiation round for services and environmental goods. We are also broadly aligned in the areas of anti-dumping, countervailing and industrial subsidies.
Intergovernmental contacts are underpinned by a wide range of non-governmental and people to people links through business affiliations (including the New Zealand/Japan Business Council), 47 sister city links, educational, cultural and science exchanges and a working holiday scheme.
The re-emergence of China as a major economic and political power is affecting the balance of power in Asia. China’s influence on New Zealand will increasingly be felt directly as a trading partner, and a source of migrants, students, tourists and investors. It will also be felt indirectly as other countries position themselves to take advantage of, and to minimise damage from, China’s growing strength.
New Zealand’s strong and growing relationship with China is built on regular high level dialogue, steadily developing trade and economic flows and rapidly expanding people-to people contacts. We enjoy close political relations with China, reflected in the number of high-level exchanges. China’s top three leaders, President Hu Jintao (2003), Chairman Wu Bangguo (2005), and Premier Wen Jiabao (2006), have visited New Zealand in the last three years. Prime Minister Helen Clark visited China in 2005. In addition there is frequent - contact between our governments in international forums such as APEC and the ASEAN Regional Forum (ARF). At both ministerial and officials’ levels, we exchange views on a wide range of issues including human rights.
Bilateral trade and investment with China has grown steadily, with significant increases in our exports to China recorded in recent years. China is now New Zealand's fourth-largest export market. In the year to July 2006, New Zealand exports to China totalled nearly $1.8 billion. Our services trade is also strong, particularly in education and tourism. 97,000 Chinese tourists visited New Zealand in the year to July 2006 (a five-fold increase over 1999), and approximately 25,000 Chinese students are currently studying here, making China our largest source of foreign students.
New Zealand exporters benefited from China’s accession to the World Trade Organisation in December 2001. Tariffs on a number of New Zealand products fell significantly. Phased trade liberalisation will continue until 2010. New Zealand exporters also benefit with increased certainty of access as a result of China becoming part of a rules-based system. As a WTO member, China shares a number of trade policy interests with New Zealand.
Korea is a key player in North Asia and an important bilateral partner for New Zealand. Relations with South Korea developed rapidly during the 1990s especially our trade and economic links. Korea is our sixth largest export market with trade levels having recovered from the economic crisis of 1998. Logs, beef, cheese and fresh fruit are our largest exports to Korea. Access to the Korean market remains difficult for some New Zealand agricultural and horticultural products. Imports to New Zealand from Korea include technology, petrol, vehicles and iron. Korea is also a world leader in the information and communications technology (ICT) sector and hosts the Seoul Digital Forum (World ICT Summit) around May every year.
New Zealand has a very good relationship with South Korea. This has strengthened over the years with regular high-level visits taking place. People-to-people and cultural links have also increased, including through the growing number of New Zealanders living and teaching English in Korea. Tourism and education also provide significant numbers of Korean visitors each year. In the year ending July 2006, over 108,000 Koreans visited New Zealand.
New Zealand’s relationship with North Korea is very limited, with diplomatic relations established in March 2001. Official relations between New Zealand and North Korea are conducted through the New Zealand Ambassador to South Korea, who is also accredited to North Korea. The North Korean Ambassador in Canberra is cross-accredited to New Zealand.
North Korea’s chief trading and economic partners are Asian nations primarily South Korea and China. New Zealand and North Korea do not have an established trading relationship.
New Zealand contributes between NZ$750,000-$1 million per annum in humanitarian support to North Korea. This humanitarian aid is administered through the multilateral organisations UNICEF and the World Food Programme.
New Zealand’s relationship with Mongolia is warm and friendly, although contact has been limited and New Zealand interests are not substantial. The trading relationship is in its infancy, with exports totalling $1.3 million in the year to July 2006. The New Zealand Embassy in Beijing is accredited to Mongolia, and Mongolia similarly handles its relationship with New Zealand through its embassy in Beijing.
New Zealand has influenced Mongolia’s public sector reform and its Human Rights Commission. New Zealand and Mongolia share common views on a range of issues of importance to New Zealand, including disarmament and the environment. Some modest NZAID programmes remain in Mongolia, including a small Head of Mission grants fund administered from the New Zealand Embassy in Beijing. Mongolian projects are also able to access the Asia Development Assistance Facility (ADAF), a regional contestable fund.
Hong Kong is a key North Asia market for New Zealand exports in goods and services with few trade access barriers. It is our tenth-largest export market, with exports totalling $529 million in the year to July 2006. Being next door to China, Hong Kong also serves as a gateway for a significant proportion of New Zealand’s food and beverage exports into mainland China. While the role of facilitating New Zealand merchandise exports to the mainland is diminishing following China’s accession to the WTO, Hong Kong still provides a valuable link for trade in services and a bridge between different cultures, languages and legal systems.
We also enjoy strong people-to-people linkages, in particular in the areas of tourism and education. New Zealand’s largest expatriate community in Asia is based in Hong Kong. We enjoy good relations with Hong Kong in APEC, the WTO and other regional and international bodies.
Within the framework of our one China policy, New Zealand has developed significant economic and people-to-people relations with Taiwan. In the absence of diplomatic relations and formal representation in Taiwan, the New Zealand Commerce and Industry Office, a subsidiary of the Wellington Regional Chamber of Commerce, unofficially represents New Zealand interests in Taiwan.
Taiwan is our 7th largest export market with exports amounting to $796 million in the year to July 2006. The high number of Taiwanese visitors and students to New Zealand, and the promotion of arts and culture, exemplify the good people-to-people contacts we enjoy with Taiwan. We work closely with Taiwan (as Chinese Taipei) in such multilateral forums as the WTO and APEC.
