Updated May 2, 201722, 2019
New Zealand
The United States and New Zealand work together closely
in bilateral, regional, and global contexts to address
common interests in the areas of defense, foreign affairs,
and trade. Bilateral and multilateral military-to-military
exercises involving the two countries, such as the 23
nation nation
RIMPAC naval exercise, have increased in number
since since
the signing of the Wellington Declaration of 2010
and the
Washington Declaration of 2012. These
declarations declarations
marked turning points in bilateral relations
after differences
over nuclear policy in the 1980s
prompted the United States
to suspend its alliance
commitments to New Zealand (see
below). The renewed
strength of the bilateral relationship
was also demonstrated
by the November 2016 visit of the
USS Sampson, the first
U.S. warship visit to New Zealand
in more than 30 years.
This strengthening of the
relationship has been building
since New Zealand’s
commitment of military forces to
Afghanistan in 2003. In
the view of many observers, this
return to close cooperation
puts to rest past differences
over nuclear policy.
New Zealand at a Glance
Government: A constitutional monarchy with approximately
120-seat unicameral parliament. Members are elected by popular
vote in single member constituencies, including seven Maori
seats, with additional proportional seats selected from party lists.
Terms of office are three years.
Head of State: Queen Elizabeth II represented by Governor
General Lt. Gen. Sir Jerry Matepare
Head of Government: Prime Minister Bill English
Natural resources: natural gas, iron ore, sand, coal, timber,
hydropower, gold, limestone
Natural hazards: earthquakes
Terrain: Mountainous and plains [41% pasture, 31% forest].
Area: 270,000 sq. km., or about the size of Colorado
Capital: Wellington
Population: 4.5 million with 0.8% growth rate (2016)
Literacy: 99% with education expenditure 7.4% of GDP (2014)
Life expectancy at birth: 81.2 years (2016) over nuclear policy.
The opposition center-right National Party is led by Simon
Bridges. The next election is due by November 2020.
Figure 1. New Zealand in Brief
Background
New Zealand and the United States have common
historical historical
roots as settler societies of the British Empire.
New New
Zealand, also known to New Zealanders as Aotearoa
or “the
land of the long white cloud,” was first settled by
the the
Polynesian-Maori people around the tenth century.
Dutch Dutch
navigator Abel Tasman discovered the western
coast of
New Zealand in 1642, but it was English Captain
James James
Cook who, over three expeditions in 1769, 1773,
and 1777,
circumnavigated and mapped the islands. The
1840 Treaty
of Waitangi, between the British Crown and
indigenous indigenous
Maori Chiefs, serves as the basis for relations
between the
Maori and European communities. The
British Monarch,
Queen Elizabeth II, is the constitutional
head of state of
New Zealand. Her representative, the
Governor General,
acts on the advice of the New Zealand
Prime Minister’s
Cabinet. In 1893, New Zealand gave all
women the right to
vote. New Zealand attained Dominion
Status in 1907 and
gained full political independence from
Britain under the
1947 Statute of Westminster Adoption Act of
1947.
Politics and Elections
New Zealand is a unicameral, mixed-member-proportional
(MMP), parliamentary democracy. MMP was introduced in
New Zealand in 1996. Under MMP, Members of
Parliament come from both single-member electorates and
from party lists leading to a parliament where a party’s
share of the seats roughly mirrors its share of the overall
party vote. New Zealand does not have a state or provincial
level of government. The center-right National Party, led by
Prime Minister Bill English, and the opposition center-left
Labour Party, led by Andrew Little, are the two main
Ethnic groups: European 71%, Maori 14%, Asian 11%, Pacific
Islander 8% (2013) [could identify with more than one group]
Livestock: Sheep 31.2 mill, cattle 10.2 mill, deer 1 mill (2012)
Export Commodities: Dairy products, meat, wood and wood
products, fruit, oil, wine.
Major Export Markets: China 19.4%, Australia 17.1%, U.S.
11%, Japan 6.2%. (2016)
Per Capita GDP: $39,605 ppp (2017 est.)
GDP/ Sector: Ag. 4.2%, industry 26.5%, services 69.2% (2016)
GDP growth: 3% est. (2017 est.)
Labor force: Agriculture 7%, industry 19%, services 74% (2016)
Sources: CIA Factbook, Economist Intelligence Unit, media.
political parties in New Zealand. The National Party holds
59 of 121 seats in parliament. English became Prime
Minister and Leader of the National Party after former
National Party Prime Minister John Key resigned in
December 2016. The National Government has the support
of the Maori Party with two seats, the United Future Party
with one seat, and the ACT New Zealand Party with one
seat. The next election is to be held on September 23, 2017.
The Labour Party and the Green Party signed a
memorandum of understanding in May 2016 to collaborate
more closely in the lead-up to the election. Observers have
noted that the New Zealand First Party, headed by Winston
Peters, currently with 12 seats in parliament, may play a
key role in forming the next government.current government is a coalition
of the Labour Party, led by Prime Minister Jacinda Ardern,
and the New Zealand First Party, led by Winston Peters.
This coalition has a confidence and supply agreement with
the Green Party and has been in power since October 2017.
Source: CIA World Factbook and the Economist Intelligence Unit.
Christchurch Massacre
A 28-year-old Australian man, who has been described as a
white supremacist, attacked the Al Noor Mosque and
Linwood Islamic Centre in Christchurch, New Zealand, on
March 15, 2019. Fifty-one people were killed in the
attacks. Following the attacks, Prime Minister Ardern
reportedly told President Trump that the best way to show
support in the wake of the attacks would be to have
“sympathy and love for all Muslim communities.”
Defense and Foreign Policy
In part because New Zealand is a small nation, New
Zealand officials place much emphasis on multilateral
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New Zealand
processes and institutions. They also place emphasis on
developing trade ties, particularly with China, and regional
economic architectures.regional economic institutions, and Australia and the United States
States figure prominently in New Zealand’s national security
security affairs. New Zealand’s commitment of regular
troops and
other assistance in support of the Provincial Reconstruction
Reconstruction Team in Bamiyan Province, Afghanistan, in 2003
2003 demonstrated, according to some observers, New
Zealand’s
value not only in political and diplomatic terms
but also as
a military partner in the field. New Zealand continues to
demonstratealso
demonstrated such support through its ongoing deployment
of deployment of
military trainers in Iraq. New Zealand troops, working
alongside Australian troops, have trained approximately
21,000 Iraqi security forces
New Zealand released a Strategic Defence Policy Statement
in July 2018 that one report called “more bold and frank in
terms of the Government’s foreign policy position, and its
singling out of countries, than anything a New Zealand
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New Zealand
government has released in recent years.” The Policy
Statement observes that “As Pacific island countries’
relationships with non-traditional partners continue to
develop, traditional partners such as New Zealand and
Australia will be challenged to maintain influence.”
Specifically, the Policy Statement notes that “China’s more
confident assertion of its interests has at times raised
tensions with neighbouring states and with the United
States.” The statement drew objections from China but was
defended by New Zealand First Party leader Peters.
Bilateral Relations with the United
States
The gradual return of close security cooperation between
the United States and New Zealand since 2003 has helped
forge a new security partnership between the two countries.
The two nations have fought together in many wars and
conflicts and established the Australia-New Zealand-United
States (ANZUS) alliance in 1951. During the mid-1980s the
United States suspended its alliance commitments to New
Zealand as a result of differences over nuclear policy,
stemming from New Zealand legislation that made it
nuclear free and the United States’ policy of neither
confirming nor denying the presence of nuclear weapons on
U.S. Navy ships.
The Wellington Declaration of 2010 was a
key turning
point in United States-New Zealand relations.
After 2010,
the United States and New Zealand agreed to
emphasize emphasize
common interests and values, including the
importance of
democracy, human rights, and the rule of
law, rather than
let differences over nuclear policy define
the relationship.
The Wellington Declaration established in
a public way a
new strategic partnership. It stated that “our
shared shared
democratic values and common interests” will guide
the the
two nations’ collective action. The agreement pointed to
the the
need to address regional and global challenges including
enhanced dialogue on regional security, practical
cooperation in the Pacific, Foreign Ministers meetings,
political-military discussions, and cooperation on climate
change, nuclear proliferation, and international extremism.
The 2012 Washington Declaration on Defense Cooperation
further opened the way for enhanced strategic dialogue and
defense cooperation. This positive momentum has been
sustained by subsequent developments. In July 2018, New
Zealand announced the purchase of four Boeing P-8A
Poseidon aircraft.
Regional Relations
New Zealand enjoys very close relations with Australia, its
neighbor across the Tasman Sea. These trans-Tasman ties
are based in the two nations’ common origin as British
colonies. These ties were strengthened as the two nations
fought together in the Australian New Zealand Army Corp
(ANZAC) in places like Gallipoli in World War I. This
relationship evolved into what is known as the ANZAC
spirit of close defense cooperation. The close economic,
people-to-people, and cultural ties, as well as a shared love
of rugby, cricket, and other sport, further reinforce bilateral
relations between these two states.
New Zealand has played a key role in promoting peace,
stability, development, and the environment in the South
Pacific. It played a key role in promoting security in TimorLeste, Bougainville, New Guinea, and the Solomon Islands.
New Zealand is working with Australia and other nations in
the South Pacific on the Pacific Agreement on Closer
Economic Relations (PACER)–Plus. New Zealand also
provides –Plus. New Zealand’s aid program is
investing ND $1 billion in the Pacific region over the period
2015-2016 to 2017-2018. New Zealand also provides
disaster assistance to the region as it did to Fiji following
following the February 2016 Cyclone Winston. New
Zealand supports
the Pacific Island’s Forum and sustainable economic
economic development, including for sustainable fisheries
in the
South Pacific. New Zealand has protested Japan’s decision
decision to resume whaling in the Southern Ocean, and has
set aside
15% of New Zealand’s Exclusive Economic Zone
for the
Kermadec Ocean Sanctuary. Former Prime Minister John
Key pledged New Zealand’s support for the Global
Research Alliance on Agricultural Greenhouse Gases at the
December 2015 U.N. Climate Change Conference in Paris.
At that time, Key also pledged that New Zealand would
strengthen its target of reducing greenhouse gas emissions
to 30% below 2005 levels. Former Labour Prime Minister
Helen Clark set a goal while Prime Minster in 2007 for
New Zealand to become “truly sustainable.”
Trade
New Zealand’s economy is to a large extent dependent on
primary commodities for export. New Zealand’s exports
include dairy, meat, forestry, wool, and fruit. New
Zealand’s key export partners are China (20.1%), Australia
(11.9%), the United States (11.6%), and Japan (7.1%).
Major U.S. imports from New Zealand include beef, wine,
dairy products, and lamb and mutton. Major U.S. exports to
New Zealand include civilian aircraft, refined petroleum,
autos, and auto parts. New Zealand does not have an
existing FTA with the United States. New Zealand joined
with other Trans Pacific Partnership (TPP) Agreement
members in an effort to move forward with TPP without the
United States in the aftermath of President Trump’s
decision to withdraw the United States from the TPP. Kermadec Ocean Sanctuary.
In February 2018 Prime Minister Jacinda Ardern’s
government announced a reset of New Zealand’s policy
toward the Pacific that is driven in part by a view that “the
Pacific has become an increasingly contested strategic
space, under which New Zealand has to work harder to
maintain our positive influence.” In discussing the Pacific
reset, Foreign Minister Winston Peters called for a
reenergized approach and stated, “There has never been a
time since 1945 when Australia and New Zealand need to
work together more closely in the Pacific.”
Relations with China
Trade is at the core of New Zealand’s relationship with
China. New Zealand’s goods exports to China quadrupled
since the signing of a bilateral Free Trade Agreement
between the two countries in 2008. New Zealand and China
are now undertaking an upgrade of their FTA agreement.
Chinese Premier Li Chinese Premier Li
Keqiang visited New Zealand in March
2017 reportedly to
discuss strengthening trade through the
FTA upgrade and
the One Belt, One Road (OBOR)
initiative initiative which is now
known as the Belt and Road Initiative. On March 27, 2017,
New Zealand signed a
memorandum of understanding with
China on China’s
OBOR initiative. In 2015, New Zealand
became a founding
member of the China-led Asia
Infrastructure Investment
Bank (AIIB). With the implementation of the TPP in doubt,
New Zealand’s trade interests may be increasingly focused
on the China-backed Regional Comprehensive Economic
Partnership (RCEP).
Bruce Vaughn, Specialist in Asian Affairs
Ian F. Fergusson, Specialist in International Trade and
Finance Bank (AIIB).
Diplomatic relations between New Zealand and China have
become strained over the past year, in part due to rising
concerns about Chinese influence in New Zealand and its
region. In November 2018 New Zealand’s Government
Communications Security Bureau stopped a New Zealand
telecommunications provider from using Huawei
equipment. Prime Minister Ardern made her first official
visit to China in April 2019. During the visit the two
nations agreed to move forward with negotiations to
upgrade their bilateral free trade agreement which went into
effect in 2008. A key challenge for New Zealand will be to
balance growing concerns over China’s influence in the
South Pacific and in New Zealand with China’s role as New
Zealand’s largest export destination.
Bruce Vaughn, Specialist in Asian Affairs
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IF10389
New Zealand
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