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The Trans-Pacific Strategic Economic Partnership Agreement is a model free trade agreement. As the first trade agreement with a membership spanning Asia, Oceania and the Americas, the Trans-Pacific Agreement bridges the Asia-Pacific Region. More
New Zealand places great store on its relationship with the United States. Both countries share a deep and longstanding friendship based on a common heritage, shared values and interests, and a commitment to promoting a free, democratic, secure and prosperous world. Both governments collaborate in a wide range of positive and productive ways. There is close cooperation in Antarctica and on Antarctic and Southern Ocean issues including safeguarding the environment, scientific research into key issues including climate change, and supporting the Antarctic Treaty system. New Zealand and the United States are working increasingly closely on issues of instability, insecurity and governance in the Pacific. Both countries have common interests in countering terrorism and the proliferation of weapons of mass destruction in the Asia-Pacific region and further afield.
As the world’s largest, most complex and technically advanced economy the United States is a key economic partner for New Zealand. The US is an important source of innovation, research and investment, and is a key market for New Zealand goods and services. The United States is New Zealand’s third largest individual export market and third largest source of imports. It is also a major source of foreign direct investment and inbound tourism. New Zealand co-operates with the United States to free up barriers to international trade, through the WTO and regionally through APEC.
Minister of Foreign Affairs Murray McCully’s most recent visit to Washington DC was in May 2011, when he met with Secretary of State Hillary Clinton and Secretary of Homeland Security Janet Napolitano (among others). Minister of Trade Tim Groser’s most recent visit to Washington DC also took place in May 2011, following the APEC meeting of Ministers Responsible for Trade in Big Sky, Montana. Minister Groser’s visit provided an opportunity to meet with his key trade and climate change counterparts in the US administration to discuss issues of mutual interest and explore areas of possible future cooperation.
Prime Minister John Key had a telephone conversation with President Barack Obama in May 2009, in which both sides reiterated their commitment to continued efforts to strengthen the relationship. He most recently met the President at the Nuclear Security Summit in Washington DC in April 2010 (where he also had a bilateral meeting with Vice President Joe Biden) and at the APEC Leaders’ Meeting in Yokohama in November 2010.
US Secretary of State Hillary Clinton visited New Zealand in November 2010. While in New Zealand, Secretary Clinton and Minister McCully signed the Wellington Declaration on a New Strategic Partnership between New Zealand and the United States of America – a framework for further cooperation between our two countries on areas of mutual interest.
David Huebner presented credentials as US Ambassador to New Zealand on 9 December 2009. The New Zealand Ambassador to the United States is Mike Moore who presented his credentials on 5 August 2010.
Cooperation on Pacific issues, relating primarily to stability and economic development, is an area of increasing dialogue and cooperation between New Zealand and the United States. The United States has long standing links with the region, notably from its presence during the Second World War, as well as through its ties with the Compact States in Micronesia and with American Samoa.
The United States is a valued contributor to the Pacific Islands Forum dialogue partner process, and it has considerable development expertise and resources to help the region address its challenges.
New Zealand and the United States cooperate closely in operations in Antarctica and in the Antarctic Treaty System. New Zealand and the UnitedStates celebrated 50 years of Antarctic Cooperation at Scott Base and McMurdo Station on 20 January 2007.
New Zealand and the UnitedStates were among the 12 original signatories to the 1959 Antarctic Treaty and are both Consultative Parties to that treaty. We work together to ensure that Antarctica remains “a natural reserve, devoted to peace and science.” Prior to this, under an Exchange of Notes in 1958, NewZealand agreed to make available certain facilities in NewZealand requested by the United States authorities for US activities in Antarctica. The United States in turn agreed to provide logistics support for NewZealand operations in Antarctica. This formed the basis for the joint logistics pool.
New Zealand and the United States cooperate closely in the Antarctic Treaty System (ATS) on many issues, including on environmental management, combating illegal, unreportedand unregulated (IUU) fishing and in promoting the development of a framework to underpin a future network of marine protected areas in the Southern Ocean. New Zealand and the United States also have a history of close collaboration in Antarctic research, including most recently ina range ofInternational Polar Year (IPY)projects such as theAntarctic Drilling Project (ANDRILL)andCensus of Antarctic Marine Life (IPY-CAML), in which ascientist from the United Statestook partin New Zealand's 35-day voyage into the Ross Sea to study marine biodiversity and habitats on New Zealand's research vessel, Tangaroa.
On 16 January 2010 the New Zealand Minister of Foreign Affairs and the US Ambassador to New Zealand jointly commissioned a Meridian Energy wind farm on Ross Island, Antarctica. The commissioning took place in Auckland, with a live video connection to Antarctica. The wind farm comprises three wind turbines, which will supply a portion of the electricity needs of both Scott Base and McMurdo Station. Logistical and operational support for the turbines’ construction and completion was provided by the US Antarctic Programme along with Antarctica New Zealand.
Protocol on Environmental Protection to the Antarctic Treaty
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United States-New Zealand economic relations cover the spectrum of commercial activity including the flow of goods, services and capital across all major economic sectors from traditional heavy manufacturing to agriculture. Newer areas of the knowledge economy are also prominent as New Zealand firms and institutions seek to commercialise their IP in sectors such as ICT, biotech and clean technology.
The United States is the largest economy in the world with a very high average income. It is New Zealand’s third largest individual export destination, third largest source of imports, and third largest individual trading partner overall (after Australia and China).
The United States remains a major market for agricultural products. It is New Zealand’s largest market for frozen beef and casein.
Detailed figures on NZ-US trade can be found under Trade Access, below.
Although the United States is already a significant trading partner for New Zealand, much scope remains to expand the relationship. Securing a free trade agreement negotiation with the United States has been a key New Zealand trade objective for more than a decade.
Confirmation that the United States would participate in the Trans-Pacific Partnership (TPP) negotiations was a significant milestone in New Zealand’s relationship with the United States, and also in terms of our strategic positioning within the wider Asia-Pacific region. Six rounds of TPP negotiations have now taken place. Besides New Zealand and the United States, the other participants are Brunei, Chile, Singapore, Australia, Peru, Viet Nam and Malaysia.
The expansion of the TPP to include the United States would remove barriers to New Zealand exports over time, expand two-way trade and investment, level the playing field for New Zealand with our competitors in the US market and enhance our shared goal of trade and economic integration in the Asia-Pacific region.
The United States is New Zealand’s third most important individual country market for agricultural exports. Our major agricultural exports to the United States are beef, dairy products and lamb, with horticultural products increasing in importance. In return, the United States is New Zealand’s second-largest source of agricultural imports, behind Australia.
There is good research, technical and commercial cooperation between New Zealand and the United States on primary production matters; such as in agricultural research, bio-technology, climate change and joint bio-security issues. New Zealand agencies and Crown Research Institutes (CRIs) work with counterparts in a number of US agencies, including the US Department of Agriculture.Founded in 1986 and based in Washington DC, the US NZ Council is a private, non-profit, and non-partisan organisation that aims to strengthenbilateral relations (www.usnzcouncil.org). The Council's central focus is the promotion of economic and commercial ties,andcultural exchange. It works closely with the New Zealand Embassy in Washington in the areas of information dissemination, event promotion and strengthening of US-New Zealand links. It has strong ties withthe Administration, Congress andbusiness. The focus of the Council’s activity is on the promotion of free trade between the United States and New Zealand.
The NZ US Council and American Chamber of Commerce have counterpart roles in New Zealand. They have both been very active in their partnership with the US NZ Council.
The fourth United States-New Zealand Partnership Forum was held in Christchurch in February 2011. The Forum brought together over 100 political, government and business leaders to discuss how our two countries might strengthen our bilateral and regional cooperation, especially under the Wellington Declaration. Discussions were largely focussed on the ongoing Trans-Pacific Partnership negotiations. The Forum was brought to a premature end when a magnitude 6.3 earthquake struck on the final day of proceedings. The United States provided valuable assistance with the earthquake response, in particular Urban Search and Rescue (USAR) support. The support of the American Friends of Christchurch has also been significant.
In the year to December 2010, New Zealand exported over NZ$3.7 billion worth of merchandise to the United States. New Zealand’s top exports were beef, dairy, sheepmeat and wine. A number of new and innovative New Zealand companies now operate in the US market, including from new and emerging sectors such as ICT, agritech, health–related services and technology.
Over the same period New Zealand imported over NZ$4.3 billion worth of merchandise from the United States. In that period, aircraft were our top import from the United States, followed by aircraft parts, turbo jets, medical or veterinary instruments and motor vehicles.
New Zealand and the United States have a well-founded investment partnership. The United States is New Zealand's second largest source and destination of foreign direct investment (FDI) after Australia. As of 31 March 2010, US direct investment in New Zealand totalled over NZ$10.6 billion (around 11% of total FDI in New Zealand). New Zealand direct investment in the United States totalled NZ$3.6billion (16.6% of total New Zealand direct investment overseas). These figures do not account for portfolio investments between both countries, which are also significant.
Major US corporate investors include Global Forest Partners, Hancock, Harvard Management Company, (all in the forestry sector), Pratt & Whitney and Lockheed Martin. Investors in the film industry include Walden Media, NBC Universal and Disney. Major NewZealand investors in the United States include Fisher and Paykel Appliances, who manufacture white-ware and outdoor cooking equipment for the United States market, and Fonterra. Fletcher Building has acquired the large American company Formica. Nuplex and a number of smaller privately-owned New Zealand companies such as Tiger Turf have also invested in manufacturing capability in the United States.
The United States is also the largest source and target for Venture Capital and angel investment and is therefore likely to be increasingly important as New Zealand seeks to commercialise an increasing portion of its intellectual property.
There are very few bilateral trade difficulties. New Zealand concerns are largely systemic and relate to US agricultural policy (e.g. the Dairy Export Incentive Programme (DEIP) and import tariff quota restrictions on dairy products). Access to the restricted US government procurement market is also important for a growing number of New Zealand companies. The United States has raised concerns around New Zealand’s investment screening, pharmaceuticals regime and the regulation of intellectual property rights.
In the post 9/11 era, there is greater interaction between New Zealand and the United States on security related issues both bilaterally and through common involvement in multilateral security initiatives. While bilateral defence cooperation remains an area where limitations relating to different views on the nuclear issue preclude a restoration of full military ties, there has been increasing interaction between New Zealand and United States military forces on overseas operations.
New Zealand has contributed New Zealand Defence Force (NZDF) personnel to Afghanistan, including New Zealand special forces, and has participated in patrolling maritime areas in the Middle East as part of Operation Enduring Freedom. This includes the deployment of RNZAF P-3K Orions and RNZN frigates. Aside from the New Zealand Special Air Services (SAS), operating in Afghanistan as part of Operation Enduring Freedom, New Zealand’s major deployment to Afghanistan has been the Provincial Reconstruction Team (PRT) in Bamyan province (under NATO-led International Security Assistance Force (ISAF) command). The PRT’s deployment has been extended until September 2011. NewZealand is focusing its attention on peace and stability, including through support to the Afghan police and army. NZDF also has staff officers in ISAF and UNAMA (United Nations Assistance Mission in Afghanistan) headquarters. Other areas of focus include health, education, and agriculture. The United States, through ISAF, provides logistic and in-extremis support to the PRT. Additional contributions (such as the deployment of medical specialists to Kandahar) are evidence of NewZealand’s ongoing commitment to achieving success in Afghanistan.
Both countries have worked more closely, in particular, on issues related to countering terrorism and the proliferation of weapons of mass destruction (WMD). New Zealand has been an active participant in the Proliferation Security Initiative (PSI), a US-led effort that aims to respond to the proliferation of weapons of mass destruction (WMD), their delivery systems, and related materials – while also maintaining consistency with relevant international and national legal requirements. These aim to establish a coordinated and effective basis through which to stop shipments of WMD, delivery systems and related materials flowing to and from states and non-state actors of proliferation concern.
New Zealand and the United States share concerns regarding the nuclear programmes of North Korea and Iran. New Zealand has implemented the United Nations Security Council Resolutions related to both countries. New Zealand has been a strong supporter of the Six Party Talks on North Korea.
Cooperation in ‘Homeland Security’ is deepening. In January 2010 New Zealand and the United States concluded a new agreement that will enhance cooperation in science and technology research to improve both countries’ shared capabilities to protect against acts of terrorism and other threats to domestic and external security. It is called the “Agreement on Science and Technology Cooperation Contributing to Domestic and External Capabilities”. It provides for closer collaboration on research and sharing innovative technologies in areas such as border and transport security, maritime surveillance and civil defence and emergency management. New Zealand welcomes the opportunities the agreement presents for New Zealand researchers’ and officials’ engagement in the work of the US Department of Homeland Security.top of page
New Zealand continues to develop its education links with the United States. The ties between New Zealand and United States educational institutes are key to achieving New Zealand’s international education goals. There is a long history of university-to-university links. All New Zealand universities have four or more active partner institutions in the United States. These typically involve student exchange and study abroad agreements, opportunities for staff exchange, and collaboration in research. Participation in each other’s education and research programmes facilitate technology and information transfer and help to strengthen the New Zealand constituency in the United States.
The Fulbright Programme is highly regarded as one of the most prestigious academic exchange programmes in the world and is strongly supported by the New Zealand Government.
Fulbright New Zealand runs education exchange programmes between New Zealand and the United States, including the Fulbright graduate programme, Fulbright senior scholar programme, Ian Axford (NZ) Fellowships in Public Policy, Harkness Fellowships, Eisenhower Exchange Fellowships, Kennedy Fellowships and the Platinum Triangle Scholarship for Entrepreneurship. Fulbright also supports teaching and research in New Zealand Studies at Georgetown University.
Fulbright provides New Zealanders and Americans with the opportunity to experience each other's countries and make contacts that will endure beyond their time of study. These connections and experiences are not only of benefit to the scholars but are integral to the strength of the relationship New Zealand has with the United States.
The New Zealand Government has established a US/NZ Education Agenda to promote active dialogue and collaboration between the New Zealand Ministry of Education and the US Federal Education Department. New Zealand continues to be actively engaged with the US/NZ Education Policy Round Table and associated research projects in conjunction with the Consortium for Policy Research in Education.
The United States is New Zealand’s most important bilateral research and technology partner. Around 40 per cent of New Zealand researchers have collaborative projects with US counterparts – more than with any other country. New Zealand has an umbrella government-to-government Science and Technology Cooperation Agreement with the US Government which acts as a platform for co-operation.
Both countries are seeking to build on established science and technology links to expand dialogue and co-operation in two emerging issues of importance to both countries: climate change and sustainability. The NZ-US Climate Change Partnership was launched in 2003. This partnership covers basic climate change science, developing new technologies, greenhouse gas accounting, public education, assistance to developing countries, and engagement with business. Since the partnership, more than 30 joint scientific projects have been undertaken.
We exchange views on policy issues and look to work together on research that will result in new technologies. For example New Zealand and United States scientists and the US Department of Energy are working on the potential of carbon dioxide capture in New Zealand’s geological strata.
New Zealand and the United States are also co-operating to measure the environmental impact of economic activities and promote more sustainable practices. One area is water sustainability and the New Zealand National Institute for Water and Atmospheric Research and the US Geological Survey are working closely together on the science behind issues such as water allocation, water quality, and the economic and human costs of floods and droughts.
New Zealand and the United States have worked on two particular sustainability issues in the current WTO negotiations. One is the effort to free up trade in environmental goods and services, where average tariffs exceed 15% globally. The market for these goods and services is roughly the same size as those for as information technology or pharmaceuticals, so the commercial case is clear. But there are obviously also considerable environmental benefits from making these goods and services cheaper and more widely available. New Zealand and the United States also work closely together on our shared goal of creating sustainable fisheries.
New Zealand universities are increasingly building their links into the United States, whether it be by connecting with US institutions, their alumni or encouraging international student exchanges.
The US is New Zealand's third largest market in terms of both visitor arrivals and expenditure, after Australia and the United Kingdom. In2010,there were 189,000 US visitors to New Zealand. US visitors spent $458.1 million in New Zealand in the year ended March 2011.
Tourist arrivals have dropped back in recent years due to the economic situation in the United States, the increasing cost of travel, and fuel surcharges on various tourism activities. In 2010, while the United States retained its ranking in terms of our key markets for inbound tourism (number three after Australia and the United Kingdom), visitor numbers had declined 4.1% over the previous twelve months.
There are a large number of New Zealanders who have chosen to live in the United States. Such individuals are often highly educated and have reached significant positions of influence and therefore provide a valuable network and source of ideas, expertise and contacts for New Zealand. New Zealand Posts and network of honorary consuls, along with a number of private associations and organisations such as Kea (keanewzealand.com) seek to maintain networks of New Zealand expats and maintain their valuable links with New Zealand.
The United States is a regular destination for New Zealand cultural groups and artists. Maori performance group Kahurangi are based part time in the United States and tour extensively. There is a growing affinity between Maori and First Nations peoples, which form the bases of valuable cultural exchanges. The United States is the focus for many other New Zealand artists and performers particularly in the film, music, and digital arts. New Zealand comedy duo Flight of the Conchords have proved a huge hit in the United States winning numerous public and industry plaudits.
New Zealand is a member of the US Visa Waiver programme that allows VWP eligible travellers to travel to the United States for travel or business for up to 90 days without a visa. In 2008 the US Department of Homeland Security announced implementation of the Electronic System for Travel Authorization (ESTA) which is a new fully automated, electronic system for screening passengers before they travel under the VWP. It is now mandatory for VWP travellers to submit an ESTA application on-line prior to travel to the US. Further information is available at www.travel.state.gov and www.cbp.gov/xp/cgov/travel/id_visa/esta/ [external links]. United States passport holders can visit New Zealand without a Visa.
New Zealand operates a Working Holiday Scheme which allows up to 5000 US citizens per year, between the ages of 18 and 30, to live and work in New Zealand. The US offers young New Zealand citizens a Work/Travel visa to allow them to work in the United States for twelve months, subject to certain conditions. More information can be found on http://newzealand.usembassy.gov/swt_faq.html [external link].
Many relationships exist between cities in New Zealand and the United States. These provide valuable frameworks for further cooperation and encouraging people to people links through cultural, education and other exchanges. Increasingly these relationships are based on mutual economic benefit rather than purely cultural exchange.
There are numerous official contacts between New Zealand and the United States, which provide the opportunity for high-level discussions and the continued development of bilateral relations. Ministers regularly meet with their US counterparts at international meetings and events. High-level visits between the United States and New Zealand take place several times a year.
Hon Tim Groser |
Minister of Trade |
May |
Hon Murray McCully |
Minister of Foreign Affairs |
May |
Dr Kurt Campbell |
Assistant Secretary of State |
February |
Congressional delegation of 8 people |
Led by Rep Donald Manzullo |
February |
Hon Tim Groser |
Minister of Trade |
September |
Hon Tariana Turia |
Associate Minister of Health |
September |
Hon Maurice Williamson |
Minister of Customs |
July |
Hon Christopher Finlayson |
Attorney General |
May |
Rt Hon John Key |
Prime Minister |
April (Nuclear Security Summit) |
Sir Peter Gluckman |
Prime Minister’s Science Advisor |
March |
Hon Pansy Wong |
Minister of Women’s Affairs |
March |
Kurt Campbell |
Assistant Secretary of State |
August |
General James E. Cartwright |
Vice Chairman, US Joint Chiefs of Staff |
April |
Bob Scher |
Deputy Assistant Secretary of Defense |
February |
Frankie Reed |
Deputy Assistant Secretary of State |
February |
Hon Ray Mabus |
Secretary of the Navy |
January |
Hon Murray McCully |
Minister of Foreign Affairs |
October April |
Hon Tim Groser |
Minister of Trade Assoc. Minister for Climate Change |
October May |
Hon Anne Tolley |
Minister of Education |
September |
Hon Bill English |
Deputy Prime Minister Minister of Finance |
September |
Hon John Key |
Prime Minister |
September (UN visit) |
Hon Rodney Hide |
Minister of Local Government |
September |
Hon Phil Goff, and Hon Maryann Street |
Leader of the Opposition, Opposition Spokesperson on Trade |
October |
Shane Jones MP and Craig Foss MP |
NZ/US Parliamentary Friendship Group |
July |
Official Name |
United States of America |
Land Area |
9, 631, 418 sq km (includes US territories) |
Population |
311.9 million (January 2011 est.) www.census.gov |
Capital City |
Washington DC |
Religion |
Predominantly Christian; large Jewish minority |
Language |
English (official); large Spanish-speaking minority |
Exchange Rate |
1 NZ $ = 0.84 US cents (August 2011) |
Political
Nominal 2010 GDP (US$bn) |
14, 598 |
2010 GDP per capita |
US$ 47,159 |
2010 GDP growth |
2.8% |
Trade balance (goods) |
US$ - 664 million |
Services balance |
US$120 million |
Current account balance |
US$ - 537 million |
Unemployment |
9.7% (December 2010) |
These figures are Economist Intelligence Unit (EIU) forecasts and estimates in January 2011.
New Zealand Trade with the United States (Year to December 2010)
NZ Exports (FOB) |
NZ$3.759 billion |
Top ten exports by value |
Frozen beef; whey and products; sheep meat; casein; wine; timber; mechano-therapy and massage appliances; butter; molluscs; iron or non-alloy steel. |
NZ Imports (CIF) |
NZ$4.394 billion |
Top ten imports by value |
Aircraft; aircraft parts; turbo-jets; medical or veterinary instruments; motorvehicles; petroleum coke; computers; trucks and vans; bombs, grenades, torpedoes etc; telephone equipment. |
Source: Statistics New Zealand
New Zealand Embassy in Washington [external link].
New Zealand Consulates-General in Los Angeles and New York [external link].
There are New Zealand Honorary Consulates in Atlanta, Boston, Chicago, Guam, Honolulu, Houston, Sacramento, Salt Lake City, San Diego, San Francisco and Seattle.
United States Embassy in Wellington [external link].
US Consulate-General in Auckland [external link].
US Commercial Offices in Wellington and Auckland [external link].
The Safe Travel website provides a travel advisory for travellers to the United States [external link].
[1] Liberty Enlightening the World (French: La Liberté éclairant le monde), generally called the Statue of Liberty, is a colossal neoclassical sculpture on Liberty Island in New York Harbor, designed by Frédéric Bartholdi and dedicated on October 28, 1886. The statue, a gift to the United States from the people of France, is of a robed female figure representing Libertas, the Roman goddess of freedom, who bears a torch and a tabula ansata (a tablet evoking the law) upon which is inscribed the date of American independence. A broken chain lies at her feet. The statue has become an iconic symbol of freedom and of the United States.
Photo courtesy of Todd Heisler/The New York Times
