The foreign relations of New Zealand are oriented chiefly toward developed democratic nations and emerging Pacific Island economies. Until the late 20th century, New Zealand aligned itself strongly with the United Kingdom (as a former British colony) and had few bilateral relationships with other countries. From the later half of the 20th century, Australia has been New Zealand's most important cultural, economic and military partner. Today, the country participates in several multilateral political organisations, including Asia-Pacific Economic Cooperation, the Pacific Community, and the Pacific Islands Forum. New Zealand has been described as an emerging power; however, such a claim needs to be considered in the context of its medium-sized economy and limited military capability. The country's major political parties have generally agreed on the broad outlines of foreign policy, and the government has been active in promoting free trade, nuclear disarmament, and arms control.
In summer 2013, New Zealand Foreign Minister Murray McCully reported that: All New Zealand's important relationships are in good repair....With the United States there are hopes of a major breakthrough in terms of trade relations. Sino – New Zealand relations are also subdued, but trade is burgeoning. Japan's decision to join the Trans-Pacific Partnership is a welcome change and New Zealand continues to pursue a free trade agreement with South Korea. The government is pressing ahead with plans to strengthen relations in a number of other areas, including Russia, South Asia, Latin America, the Persian Gulf and especially the South Pacific. It is also alive to the potential benefits of closer ties with countries on the African continent.Murray McCully, "Keeping Relationships in Good Repair," New Zealand International Review (July 2013) 38#4 p 13
History
British Dominion
After World War One, New Zealand signed the Treaty of Versailles (1919) and joined the League of Nations. Wellington trusted Conservative Party governments in London, but not Labour. When the British Labour Party took power in 1924 and 1929, the New Zealand government felt threatened by Labour's foreign policy because of its reliance upon the League of Nations. The League was distrusted and Wellington did not expect to see the coming of a peaceful world order under League auspices. What had been the Empire's most loyal Dominion became a dissenter as it opposed efforts the first and second British Labour governments to trust the League's framework of arbitration and collective security agreements.Gerald Chaudron, "The League of Nations and Imperial Dissent: New Zealand and the British Labour Governments, 1924–31," Journal of Imperial & Commonwealth History (March 2011) 39#1 pp 47–71
The governments of the Reform and United Parties between 1912 and 1935 followed a "realistic" foreign policy. They made national security a high priority, were sceptical of international institutions such as the League, and showed no interest on the questions of self-determination, democracy, and human rights. However the opposition Labour Party was more idealistic and proposed a liberal internationalist outlook on international affairs. From 1935 the First Labour Government showed a limited degree of idealism in foreign policy, for example opposing the appeasement of Nazi Germany and Japan.D.J. McCraw, "The Zenith of Realism in New Zealand's Foreign Policy," Australian Journal of Politics & History (2002) 48#3 pp. 353–368.
Second World War
When World War II broke out in 1939, New Zealand whole-heartedly joined in the defence of Britain, with Prime Minister Michael Joseph Savage declaring that "where Britain goes, we go; where Britain stands, we stand". New Zealand soldiers served in North Africa, Italy and the Pacific, and airmen in England and the Pacific, throughout the war, even when New Zealand had concerns about invasion by the Japanese.
Since 1945
During World War II the New Zealand government created a Department of External Affairs (now the Ministry of Foreign Affairs and Trade) for the first time in 1943, taking control of foreign policy that had previously been run by the Dominions Office in London. In 1947 New Zealand ratified the 1931 Statute of Westminster with the Statute of Westminster Adoption Act 1947, which made New Zealand fully independent of Britain.
The Fall of Singapore during World War II made New Zealand realise that she could no longer rely on Britain to defend the British Empire. New Zealand troops supported the British in the successful battle against Communist insurrection in Malaysia and maintained an air-force fighter squadron in Singapore, and later on Cyprus, again supporting British forces. New Zealand diplomats sought an alliance with the United States of America, and in 1951 adhered to the ANZUS Treaty between New Zealand, Australia and the US. In return for America's guarantee of protection, New Zealand felt obliged to support America in its wars, and New Zealand committed forces to the Korean War (1950–1953) under United Nations Command auspices and to the Vietnam War. By the 1970s, many New Zealanders began to feel uncomfortable with their country's support for the US, particularly in Vietnam and regarding the visits of nuclear-powered and armed United States Armed Forces warships. The Third Labour government (1972–1975) pulled New Zealand troops out of the Vietnam War and protested against French nuclear testing in the Pacific, at one stage sending a warship to act as disapproving witness to the tests.
Britain's entry into the European Economic Community in 1973 forced New Zealand into a more independent role. The British move restricted New Zealand's trade access to its biggest market, and it sought new trading partners in Asia, America and the Middle East. Australia and New Zealand signed the free-trade Closer Economic Relations agreement in 1983. The election of the Fourth Labour Government in 1984 marked a new period of independent foreign policy. Nuclear-powered and nuclear-armed ships were banned from New Zealand waters, effectively removing New Zealand from the ANZUS pact. Immigration laws were liberalised, leading to a massive increase in immigration from Asia. The Fourth National Government (1990–1999) liberalised trade by removing most tariffs and import restrictions.
In 2008, Minister of Foreign Affairs Winston Peters announced what he called "a seismic change for New Zealand's foreign service", designed to remedy the country's "struggling to maintain an adequate presence on the international stage". Peters said that the Ministry would receive additional funding and increase the number of New Zealand diplomats serving abroad by 50%."Seismic change for NZ's foreign service", Winston Peters, New Zealand government press release, 16 April 2008
Participation in international organisations
New Zealand participates in the United Nations (UN); the World Trade Organization (WTO); World Bank; the International Monetary Fund (IMF); the Organisation for Economic Co-operation and Development (OECD); the International Energy Agency; the Asian Development Bank; the Pacific Islands Forum; the Secretariat of the Pacific Community; the Colombo Plan; Asia-Pacific Economic Cooperation (APEC); and the International Whaling Commission. New Zealand also actively participates as a member of the Commonwealth. Despite the 1985 rupture in the ANZUS military alliance, New Zealand has maintained good working relations with the United States and Australia on a broad array of international issues.
In the past, New Zealand's geographic isolation and its agricultural economy's general prosperity minimised public interest in international affairs. However, growing global trade and other international economic events have made New Zealanders increasingly aware of their country's dependence on unstable overseas markets. New Zealand governments strongly advocate free trade, especially in agricultural products, and the country belongs to the Cairns group of nations in the WTO.
New Zealand's economic involvement with Asia has become increasingly important. New Zealand is a "dialogue partner" with the Association of Southeast Asian Nations (ASEAN), a member of the East Asia Summit and an active participant in APEC.
As a charter member of the Colombo Plan, New Zealand has provided Asian countries with technical assistance and capital. It also contributes through the Asian Development Bank and through UN programs and is a member of the UN Economic and Social Council for Asia and the Pacific.
Summary of international organisation participation
ABEDA, ANZUS (U.S. suspended security obligations to NZ on 11 August 1986), APEC, ARF (dialogue partner), AsDB, ASEAN (dialogue partner), Australia Group, Commonwealth, CP, EBRD, ESCAP, FAO, IAEA, IBRD, ICAO, ICC, ICCt, ICFTU, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM, ISO, ITU, NAM (guest), NSG, OECD, OPCW, PCA, PIF, Sparteca, SPC, UN, UNAMSIL, UNCTAD, UNESCO, UNHCR, UNIDO, UNMIK, UNMISET, UNMOP, UNTSO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTOSource: CIA World Factbook, 2003 edition (external link) .
United Nations
New Zealand was a founding member of the United Nations in 1945, and was in the first set of rotating non-permanent members of the United Nations Security Council.
Commonwealth of Nations New Zealand is a member state of the Commonwealth of Nations.
Trade
McGraw argues that, "Probably the greatest foreign policy achievement of [Helen] Clark's [1999–2008] term was the conclusion of a free trade agreement with China."David McCraw, "The Clark Government's Foreign Policy Legacy," New Zealand International Review (2009) 34#6 online Clark's government also set up a free-trade deal with Australia and the ten nations of ASEAN (the Association of South East Asian Nations).
New Zealand has existing free trade agreements with Australia, Brunei, Chile, the People's Republic of China, Hong Kong, Singapore, Thailand, United Kingdom; new free trade agreements are under negotiation with ASEAN, and Malaysia. New Zealand is involved in the WTO's Doha Development Agenda and was disappointed by the failure of the most recent talks in July 2006.
During 2017 to 2020, the Labour-NZ First coalition government committed to initiate a Closer Commonwealth Economic Relations (CCER) agreement with the UK, Australia, Canada and other countries and to work towards a Free Trade Agreement with the Russia-Belarus-Kazakhstan Customs Union. A free trade agreement with the European Union was signed in July 2023 and went live in May 2024. Trade deals with the Gulf Cooperation Council were signed in 2024.
New Zealand's main export is food, primarily dairy products, meat, fruit and fish; about 95% of the country's agricultural produce is exported.Source: NZ Ministry of Foreign Affairs and Trade . Other major exports are wood, and mechanical and electrical equipment. About 46% of exports are non-agricultural, but the largest industry is still the food industry. Tourism is also an extremely important component of international trade: transport and travel form around 20% of the country's export trade. New Zealand does not have large quantities of mineral resources, though it does produce some coal, oil, aluminium and natural gas.
New Zealand's largest source of imports is China, followed by (in order) Australia, the United States, Japan, and Singapore. The largest destinations for exports are, in order, Australia, China, the U.S., Japan, and South Korea. Trade figures for 2011 with New Zealand's biggest trade partners are as follows:Source: Statistics New Zealand .
+ 2011 merchandise imports and exports (millions of NZ dollars) Country Imports Exports Country Imports Exports 7,377 10,858 918 691 7,439 5,887 2,163 812 1,993 775 1,453 1,674 2,921 3,439 1,330 731 1,478 874 1,267 1,544 1,041 2 5,025 3,997 1,204 280 Total (world) 46,857 47,710
Military