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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 related issues, including safeguarding the environment, scientific research into key issues including climate change, and supporting the Antarctic Treaty system. New Zealand and the UnitedStates 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 2012. Minister McCully met with his US counterpart, Secretary of State Hillary Clinton. Minister of Trade Tim Groser’s most recent visit to Washington DC also took place in May 2012. 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 then 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. In July 2011 the Prime Minister met President Obama and other key Administration officials during a successful visit to Washington DC.
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.
US Secretary of Homeland Security Janet Napolitano visited New Zealand in May 2012. While in New Zealand, Secretary Napolitano signed a Joint Statement on Combating Trafficking in Persons in the Pacific Islands Region with Immigration Minister Nathan Guy, and signed a Joint Statement to Strengthen Border Security, Combat Transnational Organized Crime, and Facilitate Legitimate Trade and Travel with Customs Minister Maurice Williamson. Secretary Napolitano also met bilaterally with Prime Minister Key, Minister McCully, Minister of Justice Judith Collins, and Attorney-General Chris Finlayson.
David Huebner presented credentials as United States 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 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. 2012 maarks 55 years of Antarctic Cooperation between New Zealand and the UnitedStates at Scott Base and McMurdo Station.
in the Antarctic Treaty System (ATS) New Zealand and the United States cooperate closely 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 United States 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 below under Trade acess.
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. Twelve 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 strengthen bilateral 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 is the Auckland-based counterpart of the US NZ Council. (www.nzuscouncil.com). It aims at fostering and developing a strong and mutually beneficial relationship between New Zealand and the United States, and advocates for the expansion of trade and economic links between the two countries. The Councils have also taken a leadership role to develop the United States-New Zealand Partnership Forum as a means of enhancing linkages across a broader spectrum of interests.
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 (in April a more formal “closing session” was held by videolink between the United States and New Zealand). 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.
The American Chamber of Commerce in New Zealand (AMCHAM), www.amcham.co.nz, works closely with many organisations, governmental and business, in both countries to promote trade, investment, tourism and education links between the United States of America and New Zealand.
top of pageIn the year to December 2011, New Zealand exported over NZ$3.8 billion worth of merchandise to the United States. New Zealand’s top exports were beef, dairy, sheepmeat and wine. Over the same period New Zealand imported over NZ$5.1billion worth of merchandise from the United States. In that period, aircraft and airport parts were our top imports from the United States, followed by 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 2011, United States direct investment in New Zealand totalled over NZ$11,2 billion (around 12% of total FDI in New Zealand). New Zealand direct investment in the United States totalled NZ$3.8billion (16.5% of total New Zealand direct investment overseas). These figures do not account for portfolio investments between both countries, which are also significant.
Major United States 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 United States agricultural policy (e.g. the Dairy Export Incentive Programme (DEIP) and import tariff quota restrictions on dairy products). Access to the restricted United States 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). 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 United States-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 the “Agreement on Science and Technology Cooperation Contributing to Domestic and External Capabilities” which 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. The agreement 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 United States Department of Homeland Security.
New Zealand continues to develop its education links with the United States. The ties between New Zealand and United States educational institutions 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 facilitates technology and information transfer and helps 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 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.
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.
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 United States counterparts – more than with any other country. New Zealand has an umbrella government-to-government Science and Technology Cooperation Agreement with the United States 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 United States 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. The New Zealand National Institute for Water and Atmospheric Research and the United States 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 together 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 information technology or pharmaceuticals, so the commercial case is clear. But there are 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.
The United States is New Zealand's third largest market in terms of visitor arrivals and fourth largest in expenditure. In2011,there were 184,714 United States visitors to New Zealand, who spent $447 million in New Zealand in the year ended December 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 2011, 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 2.6% 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 a growing 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 build on their valuable links with New Zealand.
The United States is a regular destination for New Zealand cultural groups and artists. The Maori performance group Kahurangi is based part time in the United States and tours extensively. There is a growing affinity between Maori and First Nations peoples, which forms the basis of valuable cultural exchanges. The United States is the focus for many other New Zealand artists and performers particularly in 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 United States Visa Waiver programme (VWP) that allows VWP eligible travellers to travel to the United States for tourism purposes for up to 90 days without a visa. In 2008 the United States Department of Homeland Security announced implementation of the Electronic System for Travel Authorization (ESTA) which is a 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 United States. Further information is available at www.travel.state.gov and www.cbp.gov/xp/cgov/travel/id_visa/esta/. United States passport holders can visit New Zealand without a Visa.
New Zealand operates a Working Holiday Scheme which allows up to 5000 United States citizens per year, between the ages of 18 and 30, to live and work in New Zealand. The United States 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.
Sister city relationships
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.
Current US-NZ sister city relationships
Aspen, Colorado and Queenstown-Lakes District
Eureka, California and Nelson City
Jacksonville, Oregon and Lawrence, Clutha District
Klamath Falls, Oregon and Rotorua District
Lahaina, Hawaii and Kaikoura District
Los Angeles, California and Auckland City
Mesa, Arizona and Upper Hutt City
Milton - Freewater, Oregon and Waimate District
Missoula, Montana and Palmerston North City
Orange, California and Timaru District
Palm Desert, California and Gisborne District
Portsmouth, Virginia and Dunedin City
Pulaski, Virginia and Ashburton District
Sacramento, California and Hamilton City
San Bernadino, California and Tauranga City
Seattle, Washington and Christchurch City
Tempe, Arizona and Hutt City
Tustin, California and Matamata - Piako District
Westport and Buller District
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.
From New Zealand to the US
Hon Hekia Parata |
Minister of Education |
March |
Hon Tim Groser |
Minister of Trade |
May |
Hon Murray McCully |
Minister of Foreign Affairs |
May |
Hon Dr Jonathan Coleman |
Minister of Defence |
May |
Secretary Janet Napolitano |
Secretary of Homeland Security |
May |
Congressional delegation |
Led by Rep Hal Rogers |
January |
Congressional delegation |
Led by Sen Richard Shelby |
January |
From New Zealand to the US
Rt Hon Dr Lockwood Smith |
Speaker of the House |
October |
Hon Hekia Parata |
Minister for Women’s Affairs |
September |
Hon Bill English |
Minister of Finance |
September |
Rt Hon John Key |
Prime Minister |
July |
Hon Wayne Mapp |
Minister of Research, Science and Technology |
June/July |
Hon Tim Groser |
Minister of Trade |
May, November |
Hon Murray McCully |
Minister of Foreign Affairs |
May |
From the US to New Zealand
Dr Kurt Campbell |
Assistant Secretary of State |
February, June |
Congressional delegation |
Led by Rep Donald Manzullo |
February |
From New Zealand to the US
Hon Wayne Mapp |
Minister of Defence and Minister of Research, Science and Technology |
November/December |
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 |
From the US to New Zealand
Hon Hillary Clinton |
Secretary of State |
November |
Dr 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 |
KEY FACTS
Official Name |
United States of America |
Land Area |
9, 631, 418 sq km (includes US territories) |
Population |
312million (January 2012 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 $ = 0.8350 US cents (1 March 2012) |
Political
Nominal 2011 GDP (US$bn) |
15,006 |
2011 GDP per capita |
US$ 47,906 |
2011 GDP growth |
1.7% |
Trade balance (goods) |
US$ - 731 billion |
Services balance |
US$179 billion |
Current account balance |
US$ - 474 billion |
Unemployment |
9.0% (January 2012) |
New Zealand Trade with the United States (Year to December 2011 (provisional))
NZ Exports (FOB) |
NZ$3.859 billion |
Top ten exports by value |
Frozen beef; whey and products; sheep meat; casein; wine; timber; mechano-therapy and massage appliances;iron or non-alloy steel; aluminium; butter. |
NZ Imports (CIF) |
NZ$4.802 billion |
Top ten imports by value |
Aircraft; aircraft parts; turbo-jets; medical or veterinary instruments; motorvehicles; petroleum coke; computers; bombs, grenades, torpedoes etc; medicines; telephone equipment. |
Source: Statistics New Zealand
- The Senate has the power to confirm or reject Presidential appointees, and to ratify treaties.
- The House has the power to initiate revenue bills, although these may also be amended by the Senate.
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
