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As the 2010/11 year began, few could have imagined the range and scale of challenges that would test the Ministry of Foreign Affairs and Trade, both internationally and at home.
While some of these were associated with planned initiatives, such as developing relationships and trade access that will lift New Zealand’s economic performance, others were the result of natural phenomena that could not have been predicted. Such events have nevertheless provided opportunities for our people to perform at their best and for relationships to be enriched.
New Zealand’s future prosperity is dependent on the relationships we develop offshore and this has been a landmark year.
The Ministry has actively supported the development of improved relations between the United States and New Zealand. Relations arguably reached their highest level in 25 years with the signing of the Wellington Declaration between Secretary of State Hillary Clinton and Foreign Affairs Minister Murray McCully in November 2010. Trade, security and development assistance discussions are ongoing and we are confident of further progress in our relationship with the United States.
New Zealand’s relationship with China has continued to strengthen, with an unprecedented number of high level visits between our two countries this year and a successful presence at the Shanghai Expo.
A dialogue of 35 years between New Zealand and the Association of South East Asian Nations (ASEAN) culminated in the signing of an agreement between Minister McCully and ASEAN Foreign Ministers in July 2010 outlining a comprehensive partnership and action plan to guide cooperation from 2010–2015. This follows the implementation of a Free Trade Agreement between Australia, New Zealand and the ASEAN countries, which creates a new regional market of around 600 million people.
The Ministry is playing a lead role in developing strategies with other NZ Inc agencies to provide a unified approach with business to advancing the two-way flow of goods, services, capital and people with key countries and regions over the next five years. This work is designed to chart a course in markets that will underpin New Zealand’s growth and prosperity, in keeping with the Government’s Economic Growth Agenda. Strategies were progressed this year for China, India, the United States and Australia, with India poised to launch first in the new financial year.
Negotiations began in March 2010 to expand the existing P4 Free Trade Agreement (New Zealand, Singapore, Chile and Brunei) into a nine-party Trans-Pacific Partnership (including the United States, Australia, Peru, Viet Nam and later Malaysia). This is a strategic grouping for New Zealand and its greatest potential links to wider regional economic integration. Five Trans-Pacific Partnership (TPP) negotiating rounds took place during this year, including one in Auckland, and the aim is to conclude a framework for a regional agreement in time for Asia Pacific Economic Co operation (APEC) in November 2011.
We are continuing to progress the Single Economic Market agenda with Australia to create a seamless trans-Tasman business environment. Signing of the Closer Economic Relations Investment Protocol to reduce compliance costs for investors, and progress on the alignment of financial reporting standards will help make this a reality.
A landmark decision in favour of New Zealand made by the World Trade Organisation this year will allow access to Australia for New Zealand apples for the first time since 1921.
A review has shown that the Free Trade Agreement has underpinned significant trade growth with China, with exports doubling in the last two years and growth in all major sectors. While it is business that drives export growth, our role is to create the frameworks that support market access and these results are heartening.
New Zealand pursues its security and other international interests vigorously. We have been building support for New Zealand’s candidacy for a place on the United Nations Security Council, which comes up for election in 2014 for the 2015/16 year. Membership would give New Zealand a voice on major decisions regarding international peace and security.
We are working to address the international issue of climate change without unduly penalising New Zealand’s economic wellbeing. A particular highlight this year was a Ministerial meeting convened by New Zealand to sign the charter of the Global Research Alliance on Greenhouse Gas Emissions. More than 35 countries have joined, representing key agricultural producers, and research programmes for reducing greenhouse gas emissions from agriculture are underway.
We continue to support New Zealand’s efforts to bring an end to whaling in the Southern Ocean and welcomed news that the season ended early. Further progress was however impacted by the earthquake and tsunami in Japan.
There have been positive developments on fisheries this year, with the aim in sight of completing the fabric of regulatory arrangements for fisheries management in our part of the world.
The Ministry is supporting New Zealand’s leadership role in the Pacific through its diplomatic efforts and development assistance. Our International Development Group has reshaped its operation to better fulfil our policy objectives in the Pacific. The approach is to have fewer, deeper and longer relationships tightly focused on sustainable economic development.
One achievement of note this year relates to an initiative in Niue, where a three-year $10.8 million investment in tourism has delivered immediate results of increasing tourism numbers by 15% year-on-year, compared with a forecast of only 5%.
In the latter part of the year, we have been preparing for the 40th anniversary of the Pacific Islands Forum that will take place in Auckland in early September 2011. The theme for the Forum is converting potential into prosperity. As host and Chair of the Forum, New Zealand will have a platform to showcase its work in the Pacific and also what the Pacific has to offer in terms of tourism, business and donor opportunities.
The Pacific Islands Forum will be followed immediately by the Rugby World Cup – the third largest sporting event in the world.
While much of the Ministry’s work is offshore, on this rare occasion the world is coming to New Zealand. A comprehensive Guest of Government programme has been developed to ensure that visitors to our shores leave with a favourable impression and a desire to deepen their relationships with us.
When reflecting on the year, I believe it is both fitting and important to acknowledge the devastating earthquakes that struck Christchurch. Our staff worked around the clock in Christchurch, Wellington and at posts offshore to support the Government’s response to the February 22 earthquake. This included working with grieving families of the foreign victims, coordinating the large amount of assistance that was offered by other countries and organisations, and helping to manage international media interest. Sadly a large number of the victims were foreign nationals and I would like to record my condolences.
This year has also seen major upheaval across the Arab world and a destructive earthquake and tsunami in Japan. Our staff provide caring and valuable support to locate and assist New Zealanders during times of crisis, sometimes in very difficult circumstances. In Japan, one of our people found herself assisting an urban search and rescue crew with translation in a seaside town, where only a handful of buildings were left standing.
It is therefore pleasing that the efforts of our people in managing these and other events involving the safety of New Zealanders abroad have been reflected in high public satisfaction with our consular services.
Of particular interest in these offshore events has been the dramatic and increasing role of social media to mobilise and inform people outside the normal channels such as the mainstream or state controlled media. These increasingly pervasive technologies will have implications for the Ministry in future; both in the way that we seek to engage with our partners, and in the way we respond to events when they occur.
There is no doubt the Ministry is facing even more turbulent times ahead, both internationally and within New Zealand. The change process which began last year has continued apace this year in order to reshape the Ministry and significantly reduce our operating costs.
The integration of NZ Aid into the Ministry last year and the changes we are making to the way we manage aid are already delivering efficiencies and cost savings.
A new hub and spoke model is being been trialled in Europe, with the High Commission in London providing support to smaller posts in Warsaw, Madrid and Stockholm. This has seen increased efficiencies and reduced costs, and provided valuable insight as we review our offshore network as part of the 20/20 change programme. New posts have also opened in Abu Dhabi and Kabul, which take a different approach to the more traditional embassy model.
A new Vision and Values have been launched to guide decision making and culture as the Ministry transforms to support the Government’s priorities.
Other projects have commenced during the year for implementation in 2011/12 and 2012/13. Overall, this change programme represents the most fundamental structural, cultural and technological reform in the Ministry’s history.
It is a privilege to lead the Ministry and our dedicated staff working at home and at 53 posts abroad to ensure that New Zealand’s reputation and interests are protected and advanced. The Ministry has a rich heritage and I am mindful of this as we transform our organisation to help secure a prosperous future for New Zealand in a complex and turbulent international environment. I would like to thank our staff sincerely for their contribution over the past year to meet the intense challenges we have faced to secure benefits for New Zealand. I would also like to acknowledge the contribution of other agencies and organisations who have worked closely with us to deliver on NZ Inc and other joint initiatives.
The year ahead will no doubt have its share of uncertainty as we seek to create an edge for New Zealand internationally. I am confident we are up to the challenge.
John Allen
Secretary of Foreign Affairs and Trade