Updated June 28, 2023
New Zealand–U.S. Relations
Congress has taken an interest in how the United States and
end of Ardern’s term of office. Hipkins has stabilized
New Zealand work together in bilateral, regional, and
Labour’s political standing since assuming the premiership,
global contexts to address common concerns in the areas of
in part due to his response to the devastation caused by
defense, foreign affairs, and trade. Bilateral security
heavy flooding in early 2023 and his focus on rising
cooperation, which had been limited since differences over
inflation. Some opinion polls taken in the late spring of
nuclear policy in the 1980s prompted the United States to
2023 show a tight race between Labour and its coalition
suspend its alliance commitments to New Zealand (see
partner, the Green Party, on one side, and National and its
below), have been growing since New Zealand committed
frequent ally, the ACT Party, on the other. This opens up
military forces to Afghanistan in 2003. New security
the possibility that The Te Paati Māori, which advocates for
agreements—the Wellington Declaration of 2010 and the
stronger protection of indigenous rights, could provide the
Washington Declaration of 2012—marked turning points in
votes needed to swing the balance of power.
bilateral relations and revitalized military ties. Since the
signing of these agreements, a new bilateral strategic
Figure 1. New Zealand in Brief
partnership has emerged, and military-to-military exercises
involving the two countries have increased in number. New
Zealand is a member of the Five Eyes intelligence group
along with the United States, Australia, Canada, and the
United Kingdom. A key challenge for New Zealand is
balancing concerns over China’s growing influence with its
role as New Zealand’s largest export destination.
Background
New Zealand and the United States have common historical
roots as settler societies of the British Empire. New
Zealand, also known to New Zealanders as Aotearoa or “the
land of the long white cloud,” was first settled by the
Polynesian- Māori people around the tenth century, seven
centuries before the arrival of Europeans. The 1840 Treaty
of Waitangi, between the British Crown and indigenous
Māori Chiefs, serves as the basis for relations between the
Māori and European communities. The British Monarch is
the constitutional head of state of New Zealand. His
representative, the Governor General, acts on the advice of
the New Zealand Prime Minister’s cabinet. New Zealand
attained Dominion Status in 1907 and gained full
independence from Britain in 1947.
Climate Change
In 2019, the Ardern government passed the Zero Carbon
Politics and Elections
Act with cross-party support and committed New Zealand
New Zealand is a unicameral, mixed-member-proportional
to reduce carbon emissions to zero by 2050. Methane from
(MMP) parliamentary democracy. MMP was introduced in
agriculture and waste, which represents over 40% of New
New Zealand in 1996. Under MMP, Members of
Zealand’s emissions, was exempt from the zero emissions
Parliament come from both single-member electorates
goal, but has a separate reduction target of 24%-47% below
(districts) and from party lists, leading to a parliament in
2017 levels by 2050. In December 2020, New Zealand
which a party’s share of the seats roughly mirrors its share
declared a climate emergency and committed the
of the overall vote. New Zealand does not have a state or
government to become carbon neutral by 2025. New
provincial level of government. The current government is
Zealand has a renewable electricity target of 100% by 2035.
led by Prime Minister Christopher Hipkins of the Labour
Party, who became prime minister following Jacinda
Defense and Foreign Policy
Ardern’s resignation in January 2023. Elections, required
New Zealand places much emphasis on multilateral
triennially, are scheduled for October 2023.
processes and regional economic institutions while
Australia and the United States figure prominently in New
Ardern’s government, with 65 of 120 seats in parliament,
Zealand’s security affairs. New Zealand’s commitment of
was the first to rule in its own right since the institution of
troops and assistance in support of the Provincial
MMP. The opposition center-right National Party, led by
Reconstruction Team in Bamiyan Province, Afghanistan,
Christopher Luxon, had been gaining in popularity at the
from 2003 to 2013 demonstrated, according to observers,
New Zealand’s value as a diplomatic and military partner.
https://crsreports.congress.gov
New Zealand–U.S. Relations
New Zealand also deployed military trainers to Iraq from
New Zealand has played a key role in promoting peace,
2015 to June 2023. New Zealand has condemned Russia’s
stability, economic development, and the environment in
invasion of Ukraine, joined international partners in
the South Pacific, including in Papua New Guinea and the
imposing export controls on trade with Russia, trained
Solomon Islands. New Zealand worked with Australia and
Ukrainian troops (in the UK), provided humanitarian
South Pacific nations on the Pacific Agreement on Closer
assistance to Ukraine, and participated as a guest—with
Economic Relations (PACER)–plus, a free trade accord that
Australia, Japan, and South Korea—in meetings of NATO
came into force in December 2020. New Zealand provides
senior leaders. The Hipkins government also is debating
disaster assistance to the region and supports the Pacific
participating in the advanced technology sharing
Islands Forum, the region’s principal multilateral
component of the Australia-United Kingdom-United States
organization. New Zealand also set aside 15% of its
(AUKUS) alliance.
Exclusive Economic Zone for the Kermadec Ocean
Sanctuary to protect a critical regional ecosystem.
In 2022, the Ardern government began a Defence Review
that is expected to culminate in a new Defence White Paper
New Zealand has a trade-dependent economy and is a
and Defence Capability Plan. Some observers have
supporter of free and open trade. New Zealand signed a free
speculated that the process could lead New Zealand to
trade agreement with China in 2008. New Zealand also is a
adopt a more proactive stance in the South Pacific. New
member of the 11-member Comprehensive and Progressive
Zealand’s 2021 Defence Assessment viewed strategic
Agreement for Trans-Pacific Partnership (CPTPP) and the
competition and climate change as the country’s principal
15-nation Regional Comprehensive Economic Partnership
challenges. It prioritized a focus on the Pacific, and viewed
(RCEP) agreement, neither of which includes the United
China’s rise as the major driver of increasing strategic
States. Wellington signed an FTA with the United Kingdom
competition in the region. The Ardern government also
in February 2022.
worked to increase defense spending to address those
challenges, with such expenditures reaching 1.54% of GDP
Relations with China
in 2020.
A key challenge for New Zealand is balancing concerns
over China’s growing influence with its role as New
Relations with the United States
Zealand’s largest export destination. New Zealand’s goods
The United States and New Zealand armed forces have
exports to China quadrupled since the signing of their
fought together in many wars and conflicts and, along with
bilateral FTA. In 2015, New Zealand became a founding
Australia, established the Australia-New Zealand-United
member of the China-led Asia Infrastructure Investment
States (ANZUS) alliance in 1951. In the mid-1980s, the
Bank (AIIB), and in 2017, signed a memorandum of
United States suspended its alliance commitments to New
understanding with China on China’s Belt and Road
Zealand as a result of differences over nuclear policy,
Initiative. Although New Zealand has at times sought to
stemming from a conflict between New Zealand legislation
chart a middle path with China, diplomatic relations
that made it nuclear free and the United States’ policy of
between New Zealand and China have become somewhat
neither confirming nor denying the presence of nuclear
strained, in part due to rising concerns about PRC efforts to
weapons on U.S. ships. In 2010 the United States and New
exert political and economic influence in New Zealand and
Zealand signed the Wellington Declaration, and agreed to
the region. Concerns in New Zealand about human rights
emphasize the importance of democracy, human rights, and
situations in Hong Kong and Xinjiang have also
the rule of law, rather than let differences over nuclear
complicated relations. A Royal New Zealand Navy frigate
policy define the relationship. The 2012 Washington
joined the United Kingdom’s carrier strike group, centered
Declaration further opened the way for enhanced strategic
on the HMS Queen Elizabeth, as it sailed through the South
dialogue and cooperation. Subsequent U.S. and New
China Sea in October 2021.
Zealand administrations have sustained this momentum
with a focus on shared challenges. For example, during
Congressional Interest
their May 2022 meeting, President Biden and then-Prime
In Congress, proposed legislation has emphasized the
Minister Ardern expressed concern about a security
United States’ and New Zealand’s shared values of
agreement between China and the Solomon Islands. The
democracy, history of security cooperation, respect for
United States uses Christchurch as a logistics hub to
human rights, adherence to the rule of law, and shared
support research on Antarctica. New Zealand signed the
commitment to free and fair trade and the international
Artemis Accords in 2021, establishing principles for U.S.-
trading system. Congress also has demonstrated its interest
New Zealand space cooperation.
through the Congressional Friends of New Zealand Caucus.
In 2018, Congress passed the Knowledgeable Innovators
Regional Relations
and Worthy Investors (KIWI) Act (P.L. 115-226), granting
New Zealand enjoys close relations with Australia, its
New Zealanders access to E1 and E2 entrepreneur and
neighbor across the Tasman Sea, based to a large extent on
investor visas.
the two nations’ common origins as British colonies. These
ties were strengthened as the two nations fought together in
This In Focus updates a previous version authored by
the Australian New Zealand Army Corp (ANZAC) in
Bruce R. Vaughn.
World War I. This relationship evolved into what is known
as the “ANZAC spirit” of close defense cooperation. Goods
Mark E. Manyin, Specialist in Asian Affairs
flow tariff-free between the two countries, and over 10% of
New Zealanders reside in Australia.
IF10389
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New Zealand–U.S. Relations
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https://crsreports.congress.gov | IF10389 · VERSION 13 · UPDATED