BlogsEventsFeaturesImage galleriesMediaPublicationsAnnual reportAsia White PaperBusinesslinkNewslettersPost Election BriefStatement of IntentTrade matters
Although we have tried to use plain English content on the site, you may come across specialist terms and acronyms. Find out what they mean in our glossary of terms.
If you come across a term that isn't included in the Glossary please send us an email.
New Zealand and the United States enjoy a longstanding, close friendship. The US is a key partner for New Zealand. We are working particularly closely in the WTO negotiations and in APEC in pursuit of our shared interest in opening international markets and facilitating trade. A recent significant development is the US decision to enter into FTA negotiations to join the Trans-Pacific Economic Partnership Agreement.
The relationship is currently in very good shape, as a result of purposeful efforts by both sides over recent years to strengthen ties, through a forward-looking approach focusing on expanding cooperation in areas of common interest. Prime Minister Helen Clark’s visit to the US and meeting with President Bush in March 2007, followed by Secretary of State Condoleezza Rice’s visit to New Zealand and Samoa in July 2008, marked and reinforced the improved relationship. While the nuclear issue remains a point of difference, both sides recognise each other’s policy position and have decided that this difference should not define or overshadow the broader relationship, nor inhibit cooperation where both countries’ interests coincide.
Over the last few years there has been increased dialogue and co-operation on a wide range of security issues. New Zealand and the US share common interests in and concerns for security and good governance in the Pacific.
There is frequent high-level contact. Security issues have dominated US foreign policy. New Zealand’s contributions to regional and international security, particularly in Afghanistan, Timor-Leste and the Pacific, and involvement in efforts to counter terrorism and the proliferation of weapons of mass destruction, such as the Proliferation Security Initiative (PSI), are appreciated by the US.
The US is the world’s largest economy and New Zealand's second largest individual export destination, third largest source of imports and a major source of foreign direct investment and inbound tourism. US comprehensive participation in the Trans-Pacific Economic Partnership offers an attractive route to achievement of New Zealand’s objective of an FTA with the United States. Promoting the initiative with the new US Administration and Congress will be a key priority in 2009.
New Zealand and the US have a strong history of co-operation in Antarctica, especially in the areas of Antarctic science and research as well as transport and logistics. There is extensive co-operation in the environmental area, including through our bilateral climate change partnership and on issues such as fisheries and whaling, as well as in the fields of science and technology, including participation in the International Partnership for Energy Development in Island Nations (EDIN). Educational exchanges, promoted in particular by Fulbright New Zealand, have been operating for many years. Links with the Department of Homeland Security also are increasing, with a number of initiatives underway to enhance co-operation. People-to-people links are extensive and growing, supported by substantial two-way tourism flows and by our respective working holiday scheme and student work travel programme.
At the time of writing, the outcome of the US Presidential elections is unknown. A good deal of continuity seems likely regardless of who is elected President. There is no reason to suggest that a new administration would not take a positive view of the recent strengthening in New Zealand/United States relations. New Zealand's ongoing contribution to security and development in Afghanistan will continue to be welcomed. It is difficult to know precisely what the implications of the new administration will be for New Zealand's trade interests and ambitions, especially progress on the Trans-Pacific Agreement. The incoming President will likely be initially preoccupied with domestic economic issues and fall-out from the global financial crisis.
New Zealand’s relationship with Europe, through the institutions of the European Union (EU), and with individual member states, is long-standing and dynamic. The relationship with the UK is one of our closest globally; France and Germany are also important partners. The EU is New Zealand’s largest trading partner after Australia. Both the EU and New Zealand are committed to building a “broader framework for trade and economic relations”, with a view to developing a more formalised trade and economic partnership in the future. Bilateral cooperation continues to expand across a range of areas, including economic transformation (eg science, education, innovation policy), environmental policy, and international security. We share a deep commitment to democracy, the rule of law, respect for human rights, and a sense of good international citizenship - values that see us working together as “natural partners” on many issues, bilaterally and internationally.
There are strong historical and people-to-people links. The ability to visit Europe and work there is of key importance to New Zealanders.
The European Union accounts for about one sixth of New Zealand’s total goods trade. In the year to June 2008, New Zealand exports to the EU totalled NZ$5.7 billion and imports NZ$7.16 billion. The EU is the world’s largest economic entity and accounts for 31 percent of world economic output. Access to European markets on the best possible terms is vital to many New Zealand industries.
We share similar values and traditions with Western Europe in particular. New Zealand works together with European partners in a wide range of areas, particularly in international negotiations and standard-setting.
In September 2007 New Zealand and the EU adopted the Joint Declaration on Relations and Cooperation between New Zealand and the European Union. This sets out the directions in which the relationship has moved and proposes areas for future cooperation. A key aspect is to explore ways in which we might develop the framework for trade and economic cooperation.
A “broader framework for trade and economic relations” would enable us to build on regular high-level contacts and annual talks on agricultural trade, fisheries issues and overall trade. Negotiations on a comprehensive “open skies” air services agreement are due to begin in Brussels on 24-26 November. A bilateral customs cooperation agreement and a wine agreement are also on the cards. Although the EU remains a particularly valuable market for New Zealand’s primary products and a source of tourists, its economic importance to New Zealand is much greater than simply as a market.
As a single economic bloc with an increasingly cohesive foreign and security policy, the EU is an important player in international trade negotiations through the WTO and in developing international standards in areas such as human rights and the environment. Our positions tend to be similar and it is in both our interests to work in close cooperation.
High-level visits in both directions help strengthen New Zealand’s relations with older and newer partners within the EU. There is a regular cycle of consultations at Foreign Minister level with each holder of the EU’s six-monthly rotating Presidency. The next meeting (with France) is scheduled for 8 December 2008 in Brussels. The following round will be in the first half of 2009, with the Czech Presidency.
The Ministry works to ensure that the special New Zealand–United Kingdom (UK) relationship is not taken for granted by either side. The UK is overhauling its immigration regime. New Zealand has lobbied successfully to retain favourable access arrangements for New Zealanders. We welcomed the UK decision to retain ancestry visas and six-month leave to enter for tourists and business visitors. The final outcome of the new Youth Mobility Scheme is also positive. New Zealand and UK officials worked closely to develop the scheme. top of page
There is regular dialogue with France at political and official levels. New Zealand supports France’s constructive role in the Pacific region, where we cooperate closely including on maritime surveillance and disaster relief. During its EU Presidency from July to December 2008, France has an ambitious programme of EU diplomacy under way in areas of close interest to New Zealand, notably sustainable development. Much of the current vibrancy of the France-New Zealand relationship is derived from deepening cultural links.
A number of events are planned in 2008 to mark the 90th anniversary of the end of World War I. New Zealand has a Shared Memories Arrangement with France, as well as with Belgium, and the Belgian region of Flanders, focused on preserving and nurturing the memory of shared sacrifices.
The German/New Zealand bilateral relationship is founded on extensive links across many sectors, including education; science; immigration; tourism; cultural exchange; and international cooperation in trade, environment, Pacific affairs, and peacekeeping. We have worked persistently to broaden and deepen the relationship. Key aspects are: a very successful working holiday scheme; a film co-production agreement; the 2007 Ministerial review of the 1978 Science and Technology Cooperation (STC) Agreement; and a strategic alliance between Auckland and Hamburg cities, established in April 2007.
The Netherlands is an important partner, underpinned by significant people-to-people links. The establishment of the New Zealand Embassy in Poland in January 2005 and Sweden in July 2008 reflects growing cooperation with other large EU member states. Interaction with Spain is diversifying. The King and Queen of Spain are due to visit New Zealand in mid-2009.
Kosovo: Some 47 countries have formally recognised Kosovo’s independence. New Zealand’s normal practice is not to make a formal statement of recognition or non-recognition. Serbia has strongly opposed Kosovo’s unilateral declaration of independence (UDI) and recently submitted a proposal for the UN General Assembly to refer the question of the UDI’s legality to the International Court of Justice for an advisory opinion. Along with like-minded countries New Zealand abstained in a vote on Serbia’s proposal. This is consistent with New Zealand’s support for the rule of law and use of UN dispute resolution settlement mechanisms.
Canada is an important partner in trade, tourism and investment in both directions. As of December 2007 it was New Zealand’s 16th largest trading partner. The trading relationship is generally good, with the exception of difficulties over Canada’s policy of supply management in some agriculture sectors and market access for New Zealand beef and dairy products. These can face high Canadian tariffs and quota restrictions (dairy in particular). Last year New Zealand and Canada negotiated a new, more liberal Air Transport Agreement (ATA) which will allow for daily flights between the two countries. It is hoped that the new ATA will be ready for signing in early 2009.
Russia’s political weight and economic potential make it an important partner for New Zealand. It is a permanent member of the UN Security Council and retains a significant nuclear arsenal. It is also the last major economy which has yet to accede to the WTO. As one of the world’s three largest emitters of greenhouse gases, Russia’s approach to climate change is also significant. Its size and geographic distribution make Russia the only nation with a presence and stake in both Europe and the Pacific Rim. It is a member of APEC.
Russia has growing potential as a market for New Zealand. Trade and economic relations are well below potential. Despite the growth of Russian consumer incomes since 2000, New Zealand companies find it difficult to exploit market opportunities. top of page
Regular Foreign Ministry consultations with Russia, the next round being due in Wellington in early 2009, provide an opportunity to discuss bilateral and international issues. New Zealand has a considerable stake in Russia’s accession to the WTO. We have concluded the main bilateral goods and services negotiations; those to secure access for New Zealand beef are ongoing. The outcomes will not come into effect until Russia joins the WTO – the timing is still indeterminate. New Zealand also has an interest in developing people-to-people links and co-operation with regard to Antarctica. Russia is New Zealand’s largest source of inter-country adoptions, requiring ongoing issues management. There is a growing Russian community in New Zealand.
Recent investment by the Russian baby foods giant Nutritek in New Zealand Dairies Ltd (NZDL) in South Canterbury was approved on the basis that it would create new job opportunities, introduce new technology and increase export receipts and market competition. There are indications that Nutritek may increase its capital investment in NZDL. As a global trend, outward investment by Russian companies is increasing.
Latin America is an increasingly important region for New Zealand. Its population is expected to reach 625 million by 2015. The region has significant economic potential. Regional structures and institutions are emerging. Brazil, Mexico and a number of other countries are increasingly exercising influence in multilateral affairs.
New Zealand’s Latin America Strategy has been in place since 2000. Its aim is to increase links between New Zealand and the region in three broad areas: political and diplomatic; economic and trade; and people-to-people. The Strategy is supported by a Ministry baselined fund of $250,000 per year. The strategy is focused on Argentina, Brazil, Chile, Mexico, Peru and Uruguay.
Brazil’s importance to New Zealand is growing in line with its emerging status as a global player on priority issues for New Zealand, such as the WTO (as a major agricultural exporter) and multilateral environment negotiations. New Zealand’s relationship with Chile is underpinned by the Trans-Pacific Strategic Economic Partnership. New Zealand has indicated interest in pursuing a closer economic partnership, or ‘FTA plus’, with Mexico, our largest trading partner in Latin America.
New Zealand exports to the region were worth NZ$1.2 billion in the year to December 2007. Almost half of this trade was with Mexico – New Zealand’s 4th largest dairy market. Dairy trade with Venezuela (NZ$359 million) and Cuba (NZ$114 million) is also significant. New Zealand is increasingly focused on investment and joint ventures, particularly in the agri-business sector. Fonterra has significant dairy investments and partnerships in Chile, Brazil and Argentina. PGG Wrightson’s development of New Zealand-style dairy farming in Uruguay is New Zealand’s second largest investment in South America. There is also growing trade in services with the region (3,541 students in New Zealand in 2007; over 30,000 Latin American visitors in 2008 to August).
Regular Foreign Ministry consultations are due with Argentina, Chile, Mexico, Uruguay in Wellington in the first half of 2009.
Cabinet is due to be consulted on the next three year phase (2009-2012) of the Latin America Strategy in early 2009, following a meeting of the New Zealand Ambassadors in Latin America in early February.
The Middle East is a strategic fulcrum, the stage on which major international political and economic challenges are being played out. The Middle East contains over 60 percent of the world’s oil reserves and oil and its revenues continue to dominate most Middle East economies. The global financial crisis will dent the oil economy, but its effects are unlikely to be anywhere near as severe as for the vulnerable developing economies of Africa.
New Zealand seeks to play a constructive role in Middle East security issues and maintains substantial ongoing NZDF deployments, most prominently in Afghanistan. New Zealand’s trade with the region has rapidly expanded on the back of high oil and food prices. The region is a growing market for New Zealand services, especially education. Exports have risen by over 70 percent since 2001, to reach $1.8 billion (year ended December 2007).
New Zealand has since 2002 made a major contribution to peace-building in Afghanistan, centred on the Provincial Reconstruction Team (PRT) in Bamyan Province and a development assistance programme. The PRT commitment currently extends to September 2009. Decisions will soon be required on the future of the New Zealand engagement. Officials have prepared advice for Ministers in late 2008. Despite progress in many areas, Afghanistan remains dogged by a stubborn insurgency and is heavily dependent on outside support. NZAID’s Afghanistan programme targets women, education, human rights and alternative rural livelihoods.
New Zealand has made significant progress in negotiations towards a free trade agreement with the six member states of the Gulf Cooperation Council (GCC): Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates and Oman. The GCC takes over 50 percent of New Zealand exports to the Middle East and supplies, directly and indirectly, over 50 percent of New Zealand’s imports of oil and oil products (see Trade Negotiations section below). Emirates Airlines runs 28 flights a week to and from the region and further improvements are expected. top of page
New Zealand is firm in its demands that Iran should meet IAEA and UNSC requirements about its nuclear activities, and comply with its international human rights obligations. Our trade with Iran is hampered by international sanctions, but New Zealand maintains a useful political dialogue aimed at encouraging improved Iranian engagement with the international community. Iran’s nuclear ambitions have sparked major international tensions, with speculation about possible Israeli and/or US military attacks, but both the US and Israel seem committed to diplomatic action.
New Zealand is supportive of negotiations towards a settlement of the Arab/Israel dispute, currently part of the US-sponsored Annapolis process. The outlook for a final settlement is not good, however, with continuing political uncertainties especially on the Israeli and Palestinian sides. New Zealand maintains longstanding peacekeeping deployments to the Sinai Multinational Force and Observers (MFO) and to the UN Truce Supervision Organisation (UNTSO), and assists Palestinian refugees through the United Nations Relief and Works Agency (UNRWA) and other multilateral bodies.
Turkey is a generous and supportive host of the annual ANZAC Day commemorations at Gallipoli, which are jointly organised by New Zealand and Australia. With expectations of increasing public attendance in the lead-up to the centenary commemorations in 2015, and site capacity limitations already being experienced, options for management of future services are being developed by Australia and New Zealand in consultation with Turkey. The Governor-General is to represent New Zealand at the 2009 Gallipoli commemorations. Turkey is an emerging economy with EU accession aspirations. Efforts to strengthen the bilateral relationship in recent years have been warmly reciprocated by the Turks.
Relations with Israel, restored following settlement of the 2005 passport fraud issue, remain complicated by continued Israeli occupation of Arab lands and Israel’s conduct particularly in the occupied Palestinian territory. New Zealand continues to press Israel to comply with its international human rights and humanitarian obligations.
The future of Iraq is crucial to the restoration of stability and security in the Middle East. The situation shows signs of improvement, but major challenges are still to be met.
North African markets, including Egypt, are of growing importance to New Zealand exporters. The New Zealand Embassy in Cairo was opened in November 2007, and concerted efforts have been made to strengthen the relationship with Egypt, long considered a leader in the Arab world. Following a visit by the Minister of Trade this year to Algeria, Morocco and Libya, moves have been made to strengthen links with those countries through improved representation and more regular dialogue.
The Ministry has a modest footprint in Africa – Cairo and the single sub-Saharan African post in Pretoria. New Zealand maintains traditional Commonwealth links, closely monitors developments in Africa, particularly through the UN, and contributes to the resolution of security issues and the relief of human suffering as it can. New Zealand welcomes African ownership of the continent's development and the need for growth of democracy and good governance.
New Zealand’s relationship with South Africa is the keystone of our links with the region. South Africa dominates the southern African economy and is the largest African economy. South Africa is likely to weather the global financial crisis better than the rest of the continent. It is a major power in African institutions such as the Southern African Development Community and the African Union, a leading proponent of the New Partnership for African Development, and a leading voice for African countries in the United Nations. Strengthening New Zealand’s relationship with South Africa has been a recent focus. South Africa will open a High Commission in Wellington by April 2009, thereby becoming the only African state to have a resident diplomatic mission in New Zealand.
The Government welcomed progress between political parties in Zimbabwe to form a unity government. This is only the first step, however, in Zimbabwe’s long road back to representative democracy. While New Zealand and the international community stand ready to assist Zimbabwe’s recovery, real change will need to come. Issues of particular concern are humanitarian access, political freedom, human rights, economic reform and governance issues, and civilian oversight and reform of the security services.
The situation in Darfur and the ongoing insecurity elsewhere in Sudan and the wider region remain of serious concern. New Zealand has voiced strong support for the deployment of a full UN peacekeeping force in Darfur as soon as possible. We have contributed to international efforts to resolve the conflicts in Sudan through offering humanitarian, political and some peacekeeping support.
