New Zealand–U.S. Relations

New Zealand–U.S. Relations

Updated July 24, 2024
New Zealand–U.S. Relations
Congress has taken an interest in how the United States and
created under Labour and repealing Labour’s “Fair Pay”
New Zealand work together in bilateral, regional, and
initiative that had made it easier for workers to bargain.
global contexts to address common concerns in the areas of
Since assuming office, Luxon has visited Australia (twice),
defense, foreign affairs, and trade. Bilateral security
Japan, the Pacific Islands, the Philippines, Singapore,
cooperation, which had been limited since differences over
Thailand, and the United States.
nuclear policy in the 1980s prompted the United States to
suspend its alliance commitments to New Zealand (see
below), have been growing since New Zealand committed
military forces to Afghanistan in 2003. Cooperation
agreements in the early 2010s led to a new bilateral
strategic partnership, and military-to-military exercises
involving the two countries have grown more frequent.
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 the New Zealand
government is balancing its concerns over the Peoples
Republic of China (PRC or China) attempting to exert
greater influence in the region against its interest in
maintaining cooperative ties with New Zealand’s largest
export destination. Issues for Congress related to New
Zealand include oversight and appropriations related to
international security cooperation, international trade,
cooperation in the Pacific Islands, and New Zealand’s
possible participation in the Australia-United Kingdom-
United States’ (AUKUS) security partnership.

Historical Colonial Background
Defense and Foreign Policy
New Zealand and the United States have common historical
The National-led government, like its Labour-led
roots as settler societies of the British Empire. New
predecessor, emphasizes the importance of multilateral
Zealand, also known to New Zealanders as Aotearoa or “the
processes and regional economic institutions to New
land of the long white cloud,” was first settled by the
Zealand’s interests, and Australia and the United States
Polynesian-Māori people around the tenth century, seven
figure prominently in New Zealand’s security affairs. In
centuries before the arrival of Europeans. The 1840 Treaty
2023, the previous Labour government published a Defence
of Waitangi, between the British Crown and indigenous
Policy Review and a National Strategy Statement (New
Māori Chiefs, serves as the basis for relations between the
Zealand’s first-ever). Both describe a more threatening
Māori and European communities. The British Monarch is
external environment, discuss the challenges posed by
the constitutional head of state of New Zealand. His
China’s increasingly assertive behavior, and identify
representative, the Governor General, acts on the advice of
strategic competition and the impacts of climate change as
the New Zealand Prime Minister’s cabinet. New Zealand
two principal challenges to New Zealand’s interests. These
attained Dominion Status in 1907 and gained full
sentiments are often echoed in statements by the current
independence from Britain in 1947.
National-led coalition government, appearing to reflect a
continuity in strategic outlook. New Zealand has deployed
Politics and Elections
planes and naval vessels to help monitor international
New Zealand is a unicameral parliamentary democracy.
sanctions against North Korea, condemned Russia’s
New Zealand does not have a state or provincial level of
invasion of Ukraine, joined international partners in
government. Parliamentary elections must be held every
imposing export controls on trade with Russia, trained
three years. In the most recent elections, in October 2023,
Ukrainian troops (in the UK), provided humanitarian
the right-of-center National Party led by Christopher Luxon
assistance to Ukraine, and since 2022 has participated as a
won the most seats and subsequently formed a coalition
guest—with Australia, Japan, and South Korea—in the
government with the smaller ACT and New Zealand First
annual NATO summit. The National-led coalition
parties, bringing an end to the left-of-center Labour Party’s
government has “welcomed” AUKUS “as an initiative to
seven-year run in power. Coalition politics are the norm in
enhance regional security and stability,” and is
New Zealand. The National-led government has moved to
“investigating opportunities” for participating in AUKUS’
cut taxes and regulations, and trim government spending,
technology sharing component, known as Pillar II.
including eliminating the separate Māori Health Authority
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New Zealand–U.S. Relations
Relations with the United States
development, and the environment in the South Pacific.
The United States and New Zealand armed forces have
Approximately 60% of New Zealand’s development
fought together in many wars and, along with Australia,
assistance goes to the Pacific Islands. New Zealand,
established the Australia-New Zealand-United States
Australia, and South Pacific nations belong to the Pacific
(ANZUS) alliance in 1951. In the mid-1980s, the United
Agreement on Closer Economic Relations (PACER) Plus, a
States suspended its alliance commitments to New Zealand
free trade and development accord that came into force in
as a result of differences over nuclear policy, stemming
December 2020. New Zealand provides disaster assistance
from a conflict between New Zealand legislation that made
to the region and supports the Pacific Islands Forum, the
the country nuclear free and the United States’ policy of
region’s principal multilateral organization. In June 2022,
neither confirming nor denying the presence of nuclear
New Zealand, the United States, Australia, Japan and the
weapons on U.S. ships. In 2010, the United States and New
United Kingdom, launched the Partners in the Blue Pacific
Zealand signed the Wellington Declaration, and agreed to
(PBP), an informal organization “to support Pacific
emphasize the importance of democracy, human rights, and
priorities.”
the rule of law, rather than let differences over nuclear
policy define the relationship. The 2012 Washington
New Zealand has strong interest in Antarctica due to its
Declaration further opened the way for enhanced strategic
geographic proximity and involvement in early Antarctic
dialogue and cooperation. Subsequent U.S. and New
exploration. New Zealand has made a territorial claim to a
Zealand administrations have sustained this momentum
significant portion of the continent’s landmass, and
with a focus on shared challenges. Since at least 2021, for
maintains Scott Base, a research station at the southern end
instance, bilateral meetings among senior levels have
of Ross Island in Antarctica. Christchurch is the staging
discussed cooperation in the Pacific Islands region, an area
area for joint logistical support operations serving U.S.
of renewed emphasis for both countries. The United States
permanent stations at McMurdo and the South Pole.
uses Christchurch as a logistics hub to support research on
Increased international activity in Antarctica, particularly
Antarctica. New Zealand signed the Artemis Accords in
China’s expanding scientific and fishing presence, has
2021, establishing principles for U.S.-New Zealand space
attracted the attention of analysts in New Zealand.
cooperation. In April 2024, the two countries agreed to hold
an annual Secretary of State-Foreign Minister meeting.
Climate Change
In 2019, the Labour government passed the Zero Carbon
Relations with China
Act and committed New Zealand to reduce carbon
New Zealand’s goods exports to China quadrupled since the
emissions to zero by 2050. In December 2020, New
signing of their bilateral free trade agreement (FTA) in
Zealand declared a climate emergency and committed the
2008. In 2015, New Zealand became a founding member of
government to become carbon neutral by 2025. New
the China-led Asia Infrastructure Investment Bank (AIIB),
Zealand has a renewable electricity target of 100% by 2035.
and in 2017 signed a memorandum of understanding with
The Luxon government appears to have de-emphasized
China on China’s Belt and Road Initiative.
climate change mitigation programs in its budget and
prioritized economic issues. The government has
Although New Zealand has at times sought to chart a
announced plans to repeal Labour’s ban on offshore oil and
middle path with China that is less hawkish than others
gas exploration, and announced a goal to double mineral
such as Australia, diplomatic relations between New
exports by 2035. Luxon and other government ministers,
Zealand and China have become somewhat strained in the
however, have mentioned the importance of combatting
2020s, in part due to rising concerns about PRC efforts to
climate change in their remarks with their foreign
exert political and economic influence in New Zealand and
counterparts, and at the 2023 COP28 conference committed
the region, particularly the Pacific Islands. Concerns in
to reducing New Zealand’s net greenhouse gas emissions
New Zealand about human rights situations in Hong Kong
by 50% below gross 2005 levels by 2030.
and Xinjiang have also complicated relations. During
Luxon’s April 2024 trip to Manila, he and Philippines
Congressional Interest
President Ferdinand Marcos, Jr., issued a joint statement
In Congress, proposed legislation has emphasized the
expressing “shared serious concern” over incidents between
United States’ and New Zealand’s shared values of
Philippine and PRC vessels in the South China Sea. In July
democracy, history of security cooperation, respect for
2024, New Zealand’s National Cyber Security Centre
human rights, adherence to the rule of law, and shared
joined its counterparts from the other Five Eyes members as
commitment to free and fair trade and the international
well as Japan, South Korea, and Germany in issuing an
trading system. Congress also has demonstrated its interest
advisory about APT40, a PRC-sponsored cyber group.
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 sole
New Zealanders access to E1 and E2 entrepreneur and
formal ally. Goods flow tariff-free between the two
investor visas.
countries, and New Zealanders and Australians can legally
travel, live, and work in either country. Over 10% of New
Payne Fellow Trey Spadone contributed to this In Focus.
Zealanders reside in Australia.
Mark E. Manyin, Specialist in Asian Affairs
New Zealand has a strong Pacific identity, and has played a
key role in promoting peace, stability, economic
IF10389
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New Zealand–U.S. Relations

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