Order Code RL32876
CRS Report for Congress
Received through the CRS Web
New Zealand: Background and Bilateral
Relations with the United States
Updated June 16, 2005
Bruce Vaughn
Analyst in Southeast and South Asian Affairs
Foreign Affairs, Defense, and Trade
Congressional Research Service ˜ The Library of Congress
New Zealand: Background and Bilateral Relations with
the United States
Summary
New Zealand and the United States continue to have strong ties despite some
differences. These close ties are based on shared cultural traditions and values.
Differences between the United States and New Zealand emerged in the mid 1980s
over New Zealand’s policy to ban nuclear armed and nuclear powered ships from its
ports. This led to a defacto split between the United States and New Zealand within
the context of the Australia-New Zealand-United States (ANZUS) alliance. Despite
this issue, New Zealand is a regular contributor to international peace operations and
has contributed troops to the war against terror in Afghanistan and to assist
reconstruction efforts in Iraq.
Under the leadership of Prime Minister Helen Clark, who will likely seek a third
term as prime minister in elections that must be held before September 2005, New
Zealand is seeking a closer economic relationship with the United States through a
free trade agreement (FTA). The United States is New Zealand’s second most
important trading partner after Australia. While the overall volume of trade with new
Zealand is relatively small, at U.S.$5 billion in 2004, progress on the FTA is viewed
as politically significant.
In February of 2005, Representatives Jim Kolbe and Ellen Tauscher launched
the Friends of New Zealand Congressional Caucus. Initial membership of the caucus
totaled 56 Members of Congress. A possible free trade agreement with New Zealand
may be an issue for Congress in the year ahead.
Contents
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Domestic Politics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
External Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Contributions to Peace Operations and the War Against Terror . . . . . . . . . . . . . . 4
Bilateral Relations with the United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Free Trade Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Nuclear Differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
List of Figures
Figure 1. Map of New Zealand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
List of Tables
Table 1. U.S. Major Imports from New Zealand, 2004 . . . . . . . . . . . . . . . . . . . 11
Table 2. U.S. Major Exports to New Zealand, 2004 . . . . . . . . . . . . . . . . . . . . . . 11
New Zealand: Background and Bilateral
Relations with the United States
The close relationship between the United States and New Zealand stems from
shared cultural traditions and values. The two nations are vigorous democracies with
open market economies that have fought together in various conflicts from World
War I to Vietnam. More recently, New Zealand and the United States have worked
together in Afghanistan and in Iraq. New Zealand prides itself on being a good
international citizen and makes frequent contributions to peace operations.
Background
New Zealand, also known as
Aotearoa or “the land of the long white
New Zealand in Brief
cloud,” was settled by the Polynesian-
Area: 270,5000 sq. km or about the size of
Maori people by the Tenth Century.
Colorado
Dutch navigator Abel Tasman
Capital: Wellington
discovered the western coast of New
Population: 4 million (2003)
Zealand in 1642 but it was English
Ethnic Groups: European 75%, Maori 15%,
Polynesian 6.5%
Captain James Cook who, over three
Livestock: 9.8 mill cattle and 39.2 mill sheep
expeditions in 1769, 1773, and 1774,
Religion: Anglican 15%, Roman Catholic 13%,
circumnavigated and mapped the
Presbyterian 11%
islands. Cook reported on the Maori as
GDP growth: 4.8% (2004) 2.6% (2005 est)
well as New Zealand’s unique flora and
Per Capita GDP: $23,807 (2004 est.)
Major Markets: Australia 21.8%, U.S. 14.6%,
fauna. The 1840 Treaty of Waitangi,
Japan 11%, China 4.9%, & United Kingdom
between the British Crown and Maori
4.8%. (2003)
Chiefs, serves as the basis for defining
Inflation 2.3% (2004 est.)
relations between the Maori and
Unemployment: 4.6% (2004 est.)
Pakeha (European) communities. In
Life expectancy: 78.49 years
Government: Mixed-member proportional
1893, New Zealand gave women the
democracy, 120 seat unicameral parliament
right to vote. This made New Zealand
Chief of State: Queen Elizabeth II who is
the first country to do so.1
represented in New Zealand by the Governor
General Silvia Cartwright
Today, New Zealand is a
Sources: Economist Intelligence Unit, State
u n i c a m e r a l , m i x e d - m e m b e r -
Department, CIA World Factbook and
proportional, parliamentary democracy.
government of New Zealand statistics
Its population of almost four million
has many shared values with the United
States that stem from common historical roots as part of the British empire. United
States State Department Spokesman Phil Reeker has emphasized the “shared values”
1 A. E. McQueen, “New Zealand: Physical and Social Geography,” in The Far East and
Australasia, (Surrey: Europa Publications, 2002), p.889.
CRS-2
and “long history” that the United States and New Zealand have in common.2
Former Secretary of State Colin Powell has described New Zealand as “very, very,
very close friends” of the United States.3 The British Monarch, Queen Elizabeth II,
remains the constitutional head of state. New Zealand attained Dominion Status in
1907 and gained full political independence from Britain under the Statute of
Westminster Adoption Act of 1947. New Zealanders are over 80% urban and have
a 99% literacy rate.4 Unemployment was an estimated 4.6% in 2004.5 New
Zealanders’2004 per-capita GDP was an estimated $23,807 in U.S. dollars. New
Zealand has a land area of 103,733 square miles, which is about the size of Colorado.
It is 28% forested, 50% in pasture, and 9% under cultivation. New Zealand’s
economy expanded by 4.8% in 2004 which was an increase over the 3.4% expansion
in 2003.6 After reaching a two decade high the New Zealand Dollar appeared to be
leveling off in spring 2005.7 New Zealand’s principal exports are agriculturally based
though services, notably tourism, play an increasingly important role.
Domestic Politics
Prime Minister Helen Clark’s centre-left Labour Party led coalition government
must go to the polls some time before September 2005.8 Helen Clark became prime
minister after the 1999 elections and was returned after the 2002 elections. Labour
had a 13% lead over the centre-right National Party in a April 2005 poll. This margin
narrowed by June 2005 with one poll placing the National Party ahead of Labour by
1%.9 Prime Minister Clark has ruled out any review of New Zealand’s nuclear
policies, which are discussed in greater detail below, even if such a review was
linked to a FTA. There has been some indication that some elements of the
opposition in New Zealand might reconsider New Zealand’s nuclear policies though
neither major party is thought likely to make the nuclear debate a key election issue.10
2 Fran O’Sullivan, “U.S. Spokesman Keen to Reinforce Long Friendship,” New Zealand
Herald, November 19, 2003.
3 “Bush Hints at Trade Deal,” New Zealand Herald, October 16, 2003.
4 Paolo Pasicolan, ed. U.S. and Asia Statistical Handbook, (Washington: The Heritage
Foundation, 2003).
5 Global Insight, “New Zealand-Summary of Detailed Forecast.”
6 “New Zealand Economy,” Economist Intelligence Unit, March 29, 2005.
7 “New Zealand: Finance Outlook,” Economist Intelligence Unit, April 11, 2005.
8 “New Zealand, Country Report,” Economist Intelligence Unit, March 2005.
9 “Poll Slide a Wake-up Call,” Dow Jones News, June 6, 2005.
10 “Clark Rules out Lifting Nuclear Ban for Trade Pact,” Australian Associated Press,
February 1, 2005.
CRS-3
External Relations
New Zealand’s closest external relationship is with Australia, while its most
enduring relationship is with the United Kingdom. The closeness with Australia
stems from their common origins as British colonies. Relations between New
Zealand and Australia are very close and are formalized in the Closer Economic
Relations (CER) and Closer Defense Relations (CDR) agreements. On a cultural
level, shared national lore, such as the Australia-New Zealand Army Corp (ANZAC)
experience, which was largely forged at the battle of Gallipoli in WWI, serves to
reinforce ties between New Zealand and Australia. New Zealand is, along with
Australia, Britain, Singapore and Malaysia, a signatory to the Five Power Defense
Arrangements of 1971. New Zealand is also a member of the Commonwealth and an
active supporter of the United Nations (UN). New Zealand contributed troops to
WWI, WWII, Korea, Vietnam, and the first Gulf War.
New Zealanders’ affinities for the United Kingdom (UK) remain strong despite
the UK’s decision to sever its preferential trade relationship with New Zealand, as
well as the rest of the British Commonwealth, in order to join the European
Community in the 1970s. The United Kingdom purchased two thirds of New
Zealand’s exports in 1950. In more recent years, the UK has dropped to New
Zealand’s fourth or fifth largest destination for exports. This has made the search for
new foreign markets a key aspect of New Zealand’s foreign policy. New Zealand’s
proactive and successful policy of export diversification has expanded New
Zealand’s markets to include Japan, the European Union, Australia, and the United
States.
New Zealand has an increasingly Pacific identity that stems from both its
indigenous Maori population and other more recent Pacific island immigrants from
Polynesia and Melanesia. While Maori represent 14.5% of the population, Pacific
Islanders comprise approximately 6.5%. Auckland is the world’s largest Polynesian
city. New Zealand Foreign Minister Phil Goff has described New Zealand as a
“Pacific nation.” New Zealand has a set of relationships with South Pacific island
groups that is similar to the relationships that the United States has with various
island groupings in the Western Pacific. New Zealand has had colonial and
trusteeship relationships with the Cook Islands, Niue, Western Samoa and Tokelau.
Samoa became independent in 1962, while the Cook Islands and Niue became self
governing in 1965 and 1974 with “free association” with New Zealand. Tokelau may
soon achieve self determination. New Zealand remains engaged with the islands
through disaster relief, development assistance, and security stabilization efforts.
New Zealand also works closely with other Pacific Island states on a bilateral and
multilateral basis through the South Pacific Islands Forum, which is based in Fiji.
The Forum has supported the South Pacific Nuclear Free Weapons Zone, efforts to
promote sustainable use of fisheries resources, and regional security.11
11 “New Zealand in the Pacific,” New Zealand Ministry of Foreign Affairs and Trade,
[http://www.mfat.govt.nz].
CRS-4
Contributions to Peace Operations and the War
Against Terror
New Zealand is an active supporter of international security and peacekeeping
efforts. New Zealand’s commitment to such operations is demonstrated by New
Zealand’s leading role in helping to resolve the conflict on Bougainville, its
participation in peace operations in East Timor and, most recently, through its
contribution of troops to security operations in the Solomon Islands. In April 2005,
the Papua New Guinea Bougainville Affairs Minister, Sir Peter Barter, announced
that the PNG cabinet had decided to ask New Zealand, along with Australia, Japan,
and other states, to assist in the monitoring of elections for what may become
Bougainville’s autonomous government scheduled for May 2005.12 Prime Minister
Clark committed New Zealand military personnel, as well as police and civilian
assistance, to the Regional Assistance Mission in the Solomon Islands in the summer
of 2003. New Zealand forces joined forces from Australia, Fiji, Tonga, and Papua
New Guinea in an effort to bring peace and stability to the Solomon Islands.13 New
Zealand has also contributed to peace operations in Bosnia, Sierra Leone, and
Kosovo.
New Zealand has supported the international effort in the war against terror and
has sent a small number of peacekeeping and reconstruction forces on extended
deployment to Afghanistan.14 New Zealand, along with Britain and Germany, is
assisting the United States in establishing joint civilian-military Provincial
Reconstruction Teams (PRT) to create islands of stability across Afghanistan.15 New
Zealand assumed leadership of the PRT for Bamian Province in September 2003.16
In January 2005, Prime Minister Clark extended New Zealand’s commitment to the
Bamian PRT to September 2006.17 New Zealand has also contributed some limited
support to the training of the Afghan Army, police training, and the International
Security Force. In April 2005, New Zealand Defense Minister Mark Burton
reaffirmed New Zealand’s commitment to provide long term reconstruction and
development assistance to Afghanistan and pointed to New Zealand’s approach based
on integrating security and humanitarian intervention.18 New Zealand is in the
process of expanding its counter terrorist capabilities. Current counter terrorist
12 “PNG Seeks Help with Bougainville Elections,” Australian Broadcasting Corporation,
April 8, 2005.
13 Rt. Hon. Helen Clark, “Infantry Company Deployment to Solomons,” August 25, 2003.
[http://www.beehive.govt.nz].
14 Rt. Hon. Helen Clark, “Government Assistance to Operation Enduring Freedom and Iraq,”
June 9, 2003. [http://www.beehive.govt.nz].
15 Stephen Graham, “U.S. Military Changes Tactics,” Charleston Gazette, December 21,
2003.
16 Rt. Hon. Helen Clark, “NZDF to Lead Afghan Provincial Reconstruction Team,”
September 22, 2003. [http://www.beehive.govt.nz].
17 “New Zealand Extends Afghanistan Military Role, Adds Police,” BBC News, January 25,
2005.
18 “New Zealand Minister Restates Commitment to Afghanistan,” BBC News, April 7, 2005.
CRS-5
capabilities are provided by the 1st New Zealand Special Air Service (SAS) Group
and the Police Special Tactics Group. New Zealand is reportedly forming a third
counter terror unit which is to be called the Counter Terrorist Tactical Assault
Group.19
New Zealand’s contribution to the war against terror was demonstrated in
December 2003 when a New Zealand P-3 K Orion aircraft spotted two ships in the
Northern Arabian Sea which were found to be smuggling $11 million worth of heroin
and methamphetamines for al Qaeda.20 New Zealand is a party to all 12 United
Nations conventions on terrorism. Prime Minister Clark also provided some support
to the United States initiative to focus APEC on security issues at its 2003 meeting.21
New Zealand also sent a small contingent of combat engineers to assist with
reconstruction efforts in post-conflict Iraq. They completed their mission in October
2004.22 This deployment earned New Zealand the designation “force contributing
nation” in the estimation of the United States, which qualifies New Zealand to bid
for reconstruction projects.23 It also demonstrates recent improvement in bilateral
relations which reached a low point in March 2003 when Prime Minister Clark stated
the United States decision to go to war with Iraq without a UN Security Council
mandate was a matter of “profound regret”24 American Ambassador to New Zealand
Charles Swindells noted that the United States was “saddened” by New Zealand’s
decision not to participate in the war in Iraq before observing that this was “the first
time in our shared history, [that] New Zealanders were not with us in a major military
conflict.”25 New Zealand Ambassador to the United States John Wood has stated that
New Zealand’s policy is that “the use of force should be sanctioned by the United
Nations.”26 In 2003, New Zealand offered agricultural expertise and $580,000 in
support of Coalition Provisional Authority efforts to improve Iraqi agriculture.27
19 Andrew McAlley, “Army Recruits Soldiers for New Secret Service,” Waikato Times,
March 19, 2005.
20 Mathew Dearnaley, “Orion Patrol Fingers Dhows Linked to al Qaeda,” New Zealand
Herald, December 22, 2003.
21 “New Zealand in the News,” United States-New Zealand Council, December, 2003.
22 Hon. Mark Burton, “New Zealand Defence: Playing Our Part as a Responsible World
Citizen,” 12/11/04 [http://www.behive.govt.nz]
23 Tracy Watkins, “N.Z.’s Role in Iraq Praised by Downer,” Dominion Post, December 15,
2003.
24 Anthony Hubbard, “Stars and Swipes,” Sunday Star Times, October 19, 2003. See also,
Rt. Hon. Helen Clark, “Prime Minister’s Statement to Parliament,” February 11, 2003.
[http://www.beehive.govt.nz].
25 Ambassador Charles Swindells, “Remarks to the Victoria University Diplomat’s Series,”
U.S. Embassy, Wellington, October 8, 2003.
26 Ambassador John Woods, “Address to the Kennedy Political Union,” November 17, 2003,
New Zealand Embassy, Washington, DC.
27 Deputy Spokesman Philip Reeker, “U.S. Welcomes New Zealand’s Assistance for Iraq,
Afghanistan,” June 9, 2003, Department of State Press Release.
CRS-6
New Zealand embarked on a major increase in defense expenditure in the spring
of 2005. New Zealand announced plans in May 2005 to increase annual defense
expenditure by 27% over the next decade. The increase in funding is to expand the
number of defense personnel and upgrade equipment, including new armored
personnel carriers, new navy ships, and helicopters. It will also refurbish planes for
the air force, develop base infrastructure, increase stocks of spares, and enhance
training and retention.28 The announced $NZ 4.6 billion increase will provide New
Zealand with a greater capability to meet its security interests including; a secure
New Zealand, including its territorial waters and exclusive economic zone, a strong
strategic relationship with Australia, a stable South Pacific, and an expanding
dialogue with Southeast and Northeast Asia. It will also support New Zealand’s
global approach to collective security including participation in peace operations.29
Bilateral Relations with the United States
The United States is New Zealand’s second largest destination for exports;
14.6% of its exports go to the United States, while 21.8% go to Australia. New
Zealand’s principal exports are wool, meat, dairy products, fish, fruit, timber and
manufactured products. Agricultural exports contributed 60% of New Zealand’s
export earnings. There are also approximately 40 million sheep and 10 million cattle
in New Zealand.30 New Zealand’s exports have increased by 50% over the past ten
years.31 The United States is the second largest source of imports to New Zealand.
The U.S. Trade Representative’s Foreign Trade Barriers report on New Zealand
points out that the U.S. trade deficit with New Zealand increased by $86 million to
$555 million in 2003. It also points out that U.S. foreign direct investment of $4.4
billion, as of 2002, was concentrated in finance, wholesale, and manufacturing
sectors. Tariff rates are generally considered to be low in New Zealand as the result
of several rounds of unilateral tariff cuts begun in the mid-1980s. These cuts have
continued under the current Labour government. The report discusses intellectual
property rights (IPR) issues. While it states that New Zealand took a number of
actions to strengthen its enforcement regime it also states that the United States will
continue “to monitor developments in IPR issues closely.”32
28 “New Zealand to Hike Military Spending by 27% Over 10 Years,” Associated Press, May
2, 2005.
29 Government of New Zealand, The Defence Sustainability Initiative: Building a Long-term
Future for the New Zealand Defence Force, May 2, 2005.
30 “New Zealand in Profile,” Statistics New Zealand, 2002.
31 “New Zealand Fact Sheet, American-Australian Association.
32 U.S. Trade Representative, Foreign Trade Barriers, New Zealand, pp.340-344.
CRS-7
Free Trade Agreement
New Zealand, like Australia, has been seeking an FTA with the United States.33
Unlike Australia, its bid for an FTA was not fast tracked.34 New Zealand’s Foreign
Minister, Phil Goff, has expressed his concern that the bilateral FTA between
Australia and the United States would disadvantage New Zealand by diverting trade
and investment from New Zealand.35 Former United States Trade Representative
Bob Zoellick is reported to have stated in May 2003 that a free trade deal with New
Zealand was too difficult at that time.36 President Bush nominated Rob Portman to
replace Zoellick in March 2005. Portman has been a Representative for the second
district of Ohio. Portman’s membership on the Friends of New Zealand
Congressional Caucus which was established in February of 2005, has been viewed
as a positive sign for a possible free trade deal with New Zealand.37 Portman also co-
signed a letter to the president in 2003 urging him to start FTA negotiations with
New Zealand.38
The bipartisan Friends of New Zealand Congressional Caucus had an initial
membership of 56 members of Congress and is headed by representatives Jim Kolbe
(R-AZ) and Ellen Tauscher (D-CA). Representative Kolbe stated “In order for the
U.S. to continue being a world leader in free trade, we must work toward a free trade
agreement with New Zealand, as New Zealand will help open the door to markets
around the world.”39 The FTA is also supported by the American Chamber of
Commerce.40 The U.S. National Association of Manufacturers supports a FTA with
New Zealand.41
While the impact of an FTA on the overall United States economy would be
small, such an agreement is projected to increase U.S. merchandise exports to New
Zealand by 25% according to business groups 42 while leading to a 0.5% decline in
33 “N.Z. Hopes to Emulate Aust-U.S. Trade Deal,” Australian Broadcasting Corporation,
December 14, 2003.
34 Raylene Keenan, “Downer Doesn’t Expect N.Z. to Make U.S. FTA List Until 2005,” New
Zealand Press Association, December 14, 2003.
35 “New Zealand Hopes to Emulate Australia-U.S. Trade Deal,” Australian Broadcasting
Corporation, December 14, 2003.
36 “U.S. Trade Stance Unaltered,” The Christchurch Press, November 14, 2003.
37 “New U.S. Trade rep Boost for FTA Hopes,” Rural News, April 5, 2005.
38 “US Envoy Change Raises NZ Hopes of FTA Deal,” Dominion Post, March 19, 2005.
39 “Reps. Kolbe, Tauscher Launch Friends of New Zealand Congressional Caucus,” U.S.
Federal News, February 16, 2005.
40 “American Chambers to help NZ Bid for FTA,” The Press (Christchurch), February 24,
2005.
41 “NZ Wins Powerful Ally in Quest for U.S. FTA,” New Zealand Press Association,
February 3, 2005.
42 “Sutton Welcomes U.S. Groups Push for FTA,” New Zealand Press Association, February
(continued...)
CRS-8
the United States dairy sector.43 Beef, dairy products, wood, sheep, machinery and
parts, fish, and fruits and vegetable are New Zealand’s leading exports to the United
States. Machinery, aircraft and parts, computers and parts, electrical appliances and
equipment, motor vehicles, food, medical and vet instruments, multimedia
recordings, pharmaceuticals, and fertilizer and insecticides are America’s leading
exports to New Zealand.44 (See appendix.)
Some suggest the lack of progress on an New Zealand-U.S. FTA, relative to
Australia’s bid, is due to New Zealand’s opposition to what the Clark Government
perceived as a unilateral, United States-led war in Iraq, as well as lingering distance
in the relationship that is the result of the de facto split between the United States and
New Zealand, within what was a trilateral ANZUS alliance (with Australia), that
occurred in the mid 1980s.45 At that time, the Labour government of Prime Minister
Lange, of which current Prime Minister Helen Clark was a member, decided to ban
all nuclear powered and nuclear armed ships from New Zealand ports. This led the
United States to suspend its formal security commitment to New Zealand. The split
led commentators on the relationship to describe the United States and New Zealand
as “friends, no longer allies.” The treaty remains in place with respect to the bilateral
United States-Australia relationship. United States military aircraft continue to use
Christchurch as a supply base for Antarctica. This logistical support was established
in 1958.46 The United States and New Zealand also continue to work closely on
intelligence gathering and sharing 47 which has reportedly increased in recent years.
Nuclear Differences
New Zealand’s Prime Minister since 1999, Helen Clark, comes from the left
wing of the New Zealand Labour Party. She has also been a leader of the anti-
nuclear movement. New Zealand became a nuclear free zone in 1987. New Zealand
has been an outspoken critic of French nuclear testing in the South Pacific. Past
nuclear differences between the United States and New Zealand have been
exacerbated in recent years by other policy differences. Clark did not help bilateral
42 (...continued)
17, 2005.
43 Fred Bergsten & Robert Scollay, “The Case for a Model Free Trade Agreement Between
the United States and New Zealand,” [Prepared for the U.S.-New Zealand Council] New
Zealand Embassy, Washington, DC, [http://www.nzembassy.com].
44 Hon. Jim Suton, Minister for Trade Negotiations, United States-New Zealand Free Trade
Agreement.
45 Bruce Vaughn, “New Zealand: A Small Nation’s Perspective,” in William Carpenter and
David Wiencek eds. Asian Security Handbook: Terrorism and the New Security
Environment, (Armonk: M.E. Sharpe Publishers, 2005).
4 6 “U.S. Antarctic Program,” United States Embassy, Wellington.
[http://www.usembassy.org.nz].
47 Jim Rolf, “Let’s Just Be Friends: New Zealand and the United States,” Asian Affairs,
Summer, 2003, p.127.
CRS-9
relations with the United States when she stated that the Iraq war would not have
occurred under a Democrat-led American government.48 Her government also
reversed a decision to lease 28 F-16 aircraft from the United States, which some
perceived as part of the previous National Party government’s efforts to develop
closer ties with the United States while upgrading New Zealand’s air force. When
asked if New Zealand’s nuclear policies were having an impact on FTA negotiations
with New Zealand, President Bush stated that “The nuclear policy, obviously, makes
it difficult for us to have a military alliance. But we’re friends with the New Zealands
[sic]. We respect the New Zealand people.”49
Bill English, formerly leader of the main opposition center-right National Party,
criticized Prime Minister Clark’s foreign policy toward the United States in October
2003. English suggested revisiting New Zealand’s policy on American naval visits.
He did this by suggesting that New Zealand should reconsider its policy and invite
the United States Navy to send a ship to visit New Zealand. Some in New Zealand
believe that New Zealand stands to gain from revisiting its policy on nuclear ship
visits.50 The U.S. Ambassador to New Zealand, Charles Swindells, has stated that
the United States would welcome any review of New Zealand’s anti-nuclear
legislation.51 Visiting State Department spokesman Philip Reeker stated “If you [New
Zealand] want to re-examine that policy, that would be great. We would love to be
able to cooperate more fully with New Zealand as we did in the past.”52 A meeting
between Prime Minister Clark and President Bush in Bangkok at the Asia Pacific
Economic Cooperation meeting of October 2003 yielded no change in U.S. policy on
FTA negotiations. English lost control of the opposition National Party in October
2003 and was replaced by Don Brash.53
Brash promised referendums on a number of issues including New Zealand’s
nuclear policy if the National Party wins the elections in 2005. Brash has stated that
the National Party seeks to improve relations with both Australia and the United
States. Brash reportedly does not favor New Zealand’s current nuclear policy and
would put the issue on the agenda in his first term of office if elected.54
48 “Politics,” United States - New Zealand Council Newsletter, December, 2003.
49 “Interview of the President by Malcolm Brown,” Newswire, October 18, 2003.
50 Colin Espiner, “A Way Out of Nuclear Impasse,” The Christchurch Press, November 24,
2003.
51 Fran O’Sullivan, “U.S. Spokesman Keen to Reinforce Long Relationship,” New Zealand
Herald, November 19, 2003.
52 “U.S. Tells New Zealand Free Trade Deal Not the Be All End All of the Relationship,”
AFX UK Focus, November 18, 2003.
53 Chris Trotter, “2003-The Year that Was,” The Independent, December 17, 2003.
54 Simon Collins, “Brash Backs Referendums on Key Issues,” New Zealand Herald, April
13, 2005.
CRS-10
Figure 1. Map of New Zealand
CRS-11
Table 1. U.S. Major Imports from New Zealand, 2004
(in Millions of U.S. Dollars)
Description
Value
%
Meat
796.932
26.86
Dairy, eggs, honey, etc.
281.518
9.49
Wood
279.477
9.42
Albumins; mod strch
174.708
5.89
Machinery
162.211
5.47
Fish and seafood
131.634
4.44
Electrical machinery
125.381
4.23
Miscellaneous food
107.483
3.62
Special other
95.221
3.21
Edible fruits and nuts
93.514
3.15
Table 2. U.S. Major Exports to New Zealand, 2004
(in Millions of U.S. Dollars)
Description
Value
%
Machinery
527.303
25.4
Aircraft
224.205
10.8
Special other
192.424
9.87
Electrical machinery
156.354
7.53
Vehicles
134.213
6.47
Optic
115.956 5.59
Plastic
95.224
4.59
Organic chemicals
61.454
2.96
Chemical products
47.087
2.27
Fertilizers
35.537
1.71
Source: World Trade Atlas and U.S. Department of Commerce.