Background Note: New Zealand

Background Notes : New Zealand (02/10)
Mon, 22 Feb 2010 10:17:06 -0600

Background Note: New Zealand

PROFILE

OFFICIAL NAME:
New Zealand

Geography
Area: 270,500 sq. km.; about the size of Colorado.
Cities (December 2006): Capital--Wellington (450,600). Other cities--Auckland (1,237,239), Christchurch (338,748), Hamilton (130,000).
Terrain: Highly varied, from snowcapped mountains to lowland plains.
Climate: Temperate to subtropical.

People
Nationality: Noun--New Zealander(s). Adjective--New Zealand.
Population: 4.33 million
Annual population growth rate (during year ending September 2009): 1.2%.
Ethnic groups: European 67.6%; Maori 14.6%; Asian 9.2%; other Polynesian Pacific peoples 6.9%; Middle Eastern, Latin American, and African 0.9%; other 10.7%. (Note: People can choose to identify with more than one ethnic group.)
Religions: Christian 50%, no religion 32.3%, not stated 73%, Hindu 1.6%, Buddhist 1.3%, Islam/Muslim 0.9%, Jewish 0.2%, Spiritualism/New Age 0.5%, other 0.6%.
Languages: English, Maori, New Zealand Sign Language.
Education: Years compulsory--ages 6-16. Attendance--100%. Literacy--99%.
Health: Infant mortality rate (December 2006)--5.1/1,000. Life expectancy (December 2006)--males 77.9 yrs., females 81.9 yrs.
Work force: 75.2% of 15-64 year olds or 2.057 million. Services and government--59%; manufacturing and construction--32%; agriculture, forestry, fisheries, and mining--8.9%.

Government
Type: Parliamentary.
Constitution: No formal, written constitution.
Independence: Declared a dominion in 1907.
Branches: Executive--Queen Elizabeth II (head of state, represented by a governor general), prime minister (head of government), cabinet. Legislative--unicameral House of Representatives, commonly called parliament. Judicial--four-level system: District Courts, High Courts, the Court of Appeal, and the Supreme Court, which in 2004 replaced the Judicial Committee of the Privy Council in London as New Zealand's highest court of appeal. There also are specialized courts, such as employment court, family courts, youth courts, and the Maori Land Court.
Administrative subdivisions: 12 regions with directly elected councils and 74 districts (15 of which are designated as cities) with elected councils. There also are a number of community boards and special-purpose bodies with partially elected, partially appointed memberships.
Political parties: National, Labour, ACT, United Future, Maori Party, Progressive Party, Green Party of Aotearoa New Zealand, and several smaller parties not represented in parliament.
Suffrage: Universal at 18.

Economy
GDP (as of statistical year ended September 2009): U.S. $133.8 billion (NZ $182 billion).
Real annual GDP growth rate: Following five consecutive quarters of economic contraction, the New Zealand economy expanded by less than 0.1% over the June 2009 quarter, thereby ending its recession.
Per capita income (March 2008): U.S. $29,866.
Exchange rate (average for January to December 2009): U.S $1 = NZ $1.456 (U.S. $0.71 = NZ $1).
Natural resources: Timber, natural gas, iron sand, coal.
Agriculture (4.9% of GDP): Products--dairy products, meat, forestry products.
Industry (goods-producing industries 20.5% of GDP, service industries 68.8% of GDP): Types--finance, insurance, and business services; manufacturing; personal and community services; transport and communication; wholesale trade; construction; government administration and defense; fishing, forestry, and mining; electricity, gas, and water.
Trade (November 2009): Exports to U.S.--U.S. $2.8 billion: frozen beef, casein, whey, timber, sheep meat, wine, unwrought aluminum, cheese, and butter. Imports from U.S.--U.S. $3 billion: consisting primarily of aircraft petroleum oils (crude), medical or veterinary instruments, motor vehicles, computers, aircraft parts, machinery, turbojets, insecticides, and telephone equipment. Major trading partners (rank ordered as of November 2009)--Australia, United States, People's Republic of China, Japan, United Kingdom and the Republic of Korea.

PEOPLE
Most of the 4 million New Zealanders are of British origin. About 15% claim descent from the indigenous Maori population, which is of Polynesian origin. Nearly 76% of the people, including a large majority of Maori, live on the North Island. In addition, 265,974 Pacific peoples live in New Zealand. During the late 1870s, natural increase permanently replaced immigration as the chief contributor to population growth and accounted for more than 75% of population growth in the 20th century. Nearly 85% of New Zealand's population lives in urban areas (with almost one-third in Auckland alone), where the service and manufacturing industries are growing rapidly. New Zealanders colloquially refer to themselves as "Kiwis," after the country's native bird.

HISTORY
Archaeological evidence indicates that New Zealand was populated by fishing and hunting people of East Polynesian ancestry perhaps 1,000 years before Europeans arrived. Known to some scholars as the Moa-hunters, they may have merged with later waves of Polynesians who, according to Maori tradition, arrived between 952 and 1150. Some of the Maoris called their new homeland "Aotearoa," usually translated as "land of the long white cloud."

In 1642, Abel Tasman, a Dutch navigator, made the first recorded European sighting of New Zealand and sketched sections of the two main islands' west coasts. English Captain James Cook thoroughly explored the coastline during three South Pacific voyages beginning in 1769. In the late 18th and early 19th centuries, lumbering, seal hunting, and whaling attracted a few European settlers to New Zealand. In 1840, the United Kingdom established British sovereignty through the Treaty of Waitangi signed that year with Maori chiefs.

In the same year, selected groups from the United Kingdom began the colonization process. Expanding European settlement led to conflict with Maori, most notably in the Maori land wars of the 1860s. British and colonial forces eventually overcame determined Maori resistance. During this period, many Maori died from disease and warfare, much of it intertribal.

Constitutional government began to develop in the 1850s. In 1867, the Maori won the right to a certain number of reserved seats in parliament. During this period, the livestock industry began to expand, and the foundations of New Zealand's modern economy took shape. By the end of the 19th century, improved transportation facilities made possible a great overseas trade in wool, meat, and dairy products.

By the 1890s, parliamentary government along democratic lines was well-established, and New Zealand's social institutions assumed their present form. Women received the right to vote in national elections in 1893. The turn of the century brought sweeping social reforms that built the foundation for New Zealand's version of the welfare state.

The Maori gradually recovered from population decline and, through interaction and intermarriage with settlers and missionaries, adopted much of European culture. In recent decades, Maori have become increasingly urbanized and have become more politically active and culturally assertive.

New Zealand was declared a dominion by a royal proclamation in 1907. It achieved full internal and external autonomy by the Statute of Westminster Adoption Act in 1947, although this merely formalized a situation that had existed for many years.

GOVERNMENT
New Zealand has a parliamentary system of government closely patterned on that of the United Kingdom and is a fully independent member of the Commonwealth. It has no written constitution. Executive authority is vested in a cabinet led by the prime minister, who is the leader of the political party or coalition of parties holding the majority of seats in parliament. All cabinet ministers must be members of parliament and are collectively responsible to it.

The unicameral parliament (House of Representatives) usually has 120 seats, seven of which currently are reserved for Maori elected on a separate Maori roll. However, Maori also may run for, and have been elected to, non-reserved seats. Parliaments are elected for a maximum term of 3 years, although elections can be called sooner.

The judiciary consists of the Supreme Court, Court of Appeal, High Courts, and District Courts. New Zealand law has three principal sources--English common law, certain statutes of the U.K. Parliament enacted before 1947, and statutes of the New Zealand parliament. In interpreting common law, the courts have been concerned with preserving uniformity with common law as interpreted in the United Kingdom.

Local government in New Zealand has only the powers conferred upon it by parliament. The country's 12 regional councils are directly elected, set their own tax rates, and have a chairperson elected by their members. Regional council responsibilities include environmental management, regional aspects of civil defense, and transportation planning. The 74 "territorial authorities"--15 city councils, 58 district councils in rural areas, and one county council for the Chatham Islands--are directly elected, raise local taxes at rates they themselves set, and are headed by popularly elected mayors. The territorial authorities may delegate powers to local community boards. These boards, instituted at the behest either local citizens or territorial authorities, advocate community views but cannot levy taxes, appoint staff, or own property.

Principal Government Officials
Head of State--Queen Elizabeth II
Governor General--Anand Satyanand
Prime Minister--John Key
Foreign Minister--Murray McCully
Ambassador to the United States--Roy Ferguson (replacement is Michael (Mike) Moore, effective July-August 2010)
Ambassador to the United Nations--James (Jim) McLay

New Zealand maintains an embassy in the United States at 37 Observatory Circle NW, Washington, DC 20008 (tel. 202-328-4800, fax 202-667-5227). A consulate general is located in Los Angeles (tel. 310-207-1605, fax 310-207-3605). Tourism information is available through the New Zealand Tourism Board office in Santa Monica, California (toll-free tel. 800-388-5494) or through the following website: http://www.tourismnewzealand.com/.

POLITICAL CONDITIONS
The traditionally conservative National Party and left-leaning Labour Party have dominated New Zealand political life since a Labour government came to power in 1935. During its first 14 years in office, the Labour Party implemented a broad array of social and economic legislation, including comprehensive social security, a large-scale public works program, a 40-hour workweek, a minimum basic wage, and compulsory unionism. The National Party won control of the government in 1949 and adopted many welfare measures instituted by the Labour Party. Except for two brief periods of Labour governments in 1957-60 and 1972-75, National held power until 1984. After regaining control in 1984, the Labour government instituted a series of radical market-oriented reforms in response to New Zealand's mounting external debt. It also enacted anti-nuclear legislation that effectively brought about New Zealand's suspension from the ANZUS security alliance with the United States and Australia.

In October 1990, the National Party again formed the government, for the first of three 3-year terms. In 1996, New Zealand inaugurated a mixed-member proportional (MMP) system to elect its parliament. The system was designed to increase representation of smaller parties in parliament and appears to have done so in the MMP elections to date. Since 1996, neither the National nor the Labour Party has had an absolute majority in parliament, and for all but one of those years, the government has been a minority one. The Labour Party won elections in November 1999 and again in July 2002. In 2002 Labour formed a coalition, minority government with the Progressive Coalition, a left-wing party holding two seats in parliament. The government relied on support from the centrist United Future Party to pass legislation.

Following a narrow victory in the September 2005 general elections, Labour formed a coalition with the one-seat Progressive Party. The government also entered into limited support agreements with the United Future New Zealand and NZ First Parties, whose leaders were respectively given the Revenue and Foreign Affairs ministerial positions outside of the cabinet. This gave Labour an effective one-seat majority with which to pass legislation in parliament. Labour also secured an assurance from the Green Party that it would abstain from a vote of confidence against the government. The 2005 elections saw the new Maori Party win four out of the seven reserved Maori seats. The additional seat in the 121-member parliament was the result of an overhang from 2005 elections. There were two independent members of parliament (MPs): a former Labour Party MP and a former United Future New Zealand MP, both of whom left their respective parties in 2007.

The 2008 general election on November 8 was comfortably won by the John Key-led National Party. National won 45% of the popular vote (58 seats) to Labour's 34% (43 seats). The Green Party won nine seats; ACT won five; the Maori Party picked up an additional Maori seat to bring its total number of seats to five; the Progressives and United Future won one seat each. New Zealand First, the party of former foreign minister Winston Peters, did not win enough votes to return to parliament. On November 16, Key announced the formation of a new National-led center-right government in coalition with the right-leaning ACT and the centrist United Future party. National also entered into a limited support agreement with the Maori Party. Collectively, this gives the government 69 votes to pass legislation in the new 122-member parliament, the two extra seats the results of an overhang from the election. The leaders of ACT and United Future were respectively given the local government and revenue ministerial portfolios. ACT's co-leader was given the consumer affairs ministerial portfolio. The co-leaders of the Maori Party were each given the Maori affairs and community ministerial portfolios, although their posts are outside of cabinet with the right to dissent on other policy issues outside portfolio areas. The government was sworn in on November 19, 2008, with Key becoming New Zealand's 38th prime minister. During her election night concession speech, outgoing Prime Minister Helen Clark announced that she would step down as Labour's leader after 15 years in charge. She was succeeded as party leader by Phil Goff. Clark resigned from parliament on April 8, 2009 to become the Administrator of the United Nations Development Program in New York. The 49th parliament commenced on December 8, 2008 and resumed session on February 9, 2010 after a customary summer recess. The next general election is scheduled to be held by November 2011.

ECONOMY
New Zealand's economy historically has been based on a foundation of exports from its very efficient agricultural system. Leading agricultural exports include dairy products, meat, forest products, fruit and vegetables, fish, and wool. New Zealand was a direct beneficiary of many of the reforms achieved under the Uruguay Round of trade negotiations, with agriculture in general and the dairy sector in particular enjoying many new trade opportunities.

The country has substantial hydroelectric power and reserves of natural gas, although the largest natural gas condensate and oil field--supplying nearly 75% of the country's hydrocarbons--was expected to be tapped out by 2009. Based on recent natural gas exploration between Australia and New Zealand, natural gas production is projected to increase by 3.5% by 2020. Leading manufacturing sectors are food processing, wood and paper products, and metal fabrication. Service industries, particularly financial, insurance, and business services, form a significant part of New Zealand's economy. As of March 2008 New Zealand had 1,506,000 Internet subscribers, amounting to approximately 65% of New Zealand households, ranking above Australia, the U.K., and the U.S.

Since 1984, government subsidies including for agriculture were eliminated; import regulations liberalized; tariffs unilaterally slashed; exchange rates freely floated; controls on interest rates, wages, and prices removed; and marginal rates of taxation reduced. Tight monetary policy and major efforts to reduce the government budget deficit brought the inflation rate down from an annual rate of more than 18% in 1987. The restructuring and sale of government-owned enterprises in the 1990s reduced government's role in the economy and permitted the retirement of some public debt. As a result, New Zealand is now one of the most open economies in the world.

After five consecutive quarters of economic retrenchment, the New Zealand economy grew by less than 0.1% over the June 2009 quarter, thereby ending its recession. Growth is forecast to remain weak in the short term as households go through a period of debt consolidation. Annual average growth was expected to be its weakest in the year ending June 2009. After this, an export-led recovery is expected to lead to growth increasing to trend levels of around 3% in 2011. New Zealand's unemployment rate jumped 6.5% from the September 2009 quarter to 7.3% in the last three months of 2009, its highest level in more than 10 years, New Zealand's unemployment rate compared with the Organization for Economic Cooperation and Development (OECD) average of 8.6%, and was ranked 12th of 27 OECD countries with standardized unemployment rates.

A 22% drop in the number of New Zealanders and long-term residents departing the country in 2009 produced the highest net rise in permanent and long term (PLT) migration since 2004. Net inward long-term migration in calendar 2009 was 21,300, compared to 3,800 in 2008, almost twice the average of 11,900 between 1990 and 2009, and net losses during a period of local economic weakness from 1998 to 2001. Rather than an influx of new arrivals escaping the global financial crisis, 2009's spike in net permanent migration was driven by the fact that the 65,200 PLT departures were down 18,500 on the 2008 figures. Long-term arrivals were down 1% at 86,400. Of those departures, 41,600 were New Zealand citizens, down by a third from 60,600 in 2008. For the month of December, 2009 PLT arrivals exceeded departures by 1,700 on a seasonally adjusted basis. Short-term visitor arrivals rebounded with the largest inbound arrivals total ever recorded for any month recorded in December 2009, at 341,300, up 6% from the previous high recorded in December 2008, driven in part by growth in the numbers visiting family and friends over the Christmas period. Arrivals from Australia were up 14,000 (11%) for December 2009 compared with the same month a year earlier, continuing large monthly increases recorded since April 2009. Americans also chose New Zealand for short trips in record numbers for a December month, at 26,400, compared with the previous December high of 25,900 in December 2003. Overseas visitor arrivals numbered 2.5 million in the year ended June 2009. This was a 2.5% decrease from the June 2008 year. The largest sources of visitors to New Zealand in the year ended June 2009 were Australia, the United Kingdom, the United States, China, and Japan.

Traditionally, New Zealand's economy has been helped by strong economic relations with Australia. New Zealand and Australia are partners in "Closer Economic Relations" (CER), which allows for free trade in goods and most services. Since 1990, CER has created a single market of more than 22 million people, and this has provided new opportunities for New Zealand exporters. Australia is now the destination of 25% of New Zealand's exports, compared to 14% in 1983. Both sides also have agreed to consider extending CER to product standardization and taxation policy. New Zealand has had a free trade agreement with Singapore since 2001. In July 2005, both countries joined with Chile and Brunei to form a Trans-Pacific Strategic Economic Partnership (TPP), liberalizing trade in goods and services between them. On September 22, 2008, comprehensive negotiations for the U.S. to join the TPP were launched, and following President Barack Obama’s December 2009 announcement of U.S. interest in re-engaging on TPP, talks were scheduled to begin in early 2010. In April 2005, New Zealand initialed a free-trade deal with Thailand. In April 2008 New Zealand concluded a free trade agreement (FTA) with China. In October 2009, negotiations concluded on an FTA with the Gulf Cooperation Council (GCC--made up of Bahrain, Oman, Kuwait, Saudi Arabia, the U.AE., and Qatar); it is likely that the agreement will be signed in the first half of 2010. The New Zealand/Hong Kong, China Closer Economic Partnership (CEP) was concluded in November 2009, and the agreement will likely be signed in March 2010. In December 2007, New Zealand and South Korea announced the beginning of a study group to explore the benefits of a bilateral free trade agreement. The first round of FTA negotiations between New Zealand and South Korea took place in Seoul in June 2009. In June 2008, New Zealand and Japan established an economic working group to review their bilateral economic relationship. New Zealand and India agreed to undertake a joint study into the implications of a FTA in 2007. That study was completed in February 2009, and in January 2010 the two governments announced that negotiations will commence between their countries.

New Zealand's top six trading partners (total trade) as of November 2009 included Australia, the United States, the People's Republic of China, Japan, the United Kingdom, and the Republic of Korea. Australia continued to be New Zealand’s principal export market, totaling U.S. $6.2 billion, and contributing 22.6% of total exports as of November 2009. The United States and the People's Republic of China received U.S. $2.8 billion each. As New Zealand’s fourth-largest export destination, export trade with Japan was valued at U.S. $1.9 billion. Australia remained New Zealand’s largest source of merchandise imports in the year ended June 2009, accounting for 17.6% of total imports. Total imports from Australia were valued at U.S. $5.1 billion, a 6.5% decrease from the November 2008 year. China was New Zealand’s second-largest source of imports, with a value of U.S. $4.2 billion, or 14.4% of total imports.

The United States is the second-largest trading partner for New Zealand, with U.S. goods and services accounting for approximately 9% of all imports. The New Zealand dollar reached a 24-year high of over U.S $0.80 in July 2007 (the highest since the New Zealand dollar was floated), but as of February 2010 the Kiwi dollar was trading at U.S. $0.69. New Zealand's total imports from the U.S. as of June 2009 amounted to 10.1% of total New Zealand imports, totaling NZ $4.4 billion (U.S. $ 3 billion). The market-led economy offers many benefits for U.S. exporters and investors. Investment opportunities exist in chemicals, food preparation, finance, tourism, and forest products, as well as in franchising. The best sales and investment prospects are for whole aircraft and aircraft parts, medical or veterinary instruments, motor vehicles, information technology, hotel and restaurant equipment, telecommunications, tourism, franchising, food processing and packaging, and medical equipment. On the agricultural side, the best prospects are for fresh fruit, snack foods, and soybean meal.

New Zealand welcomes and encourages foreign investment without discrimination. The Overseas Investment Office (OIO) must give consent to foreign investments that would control 25% or more of businesses or property worth more than NZ $100 million. Restrictions and approval requirements also apply to certain investments in land and in the commercial fishing industry. OIO consent is based on a national interest determination. Foreign buyers of land can be required to report periodically on their compliance with the terms of the government's consent to their purchase. The OIO, part of Land Information New Zealand, took over the functions of the Overseas Investment Commission in August 2005. Full remittance of profits and capital is permitted through normal banking channels. As of March 2009, U.S. foreign direct investment in New Zealand amounted to U.S. $2.2 billion (NZ $3.2 billion).

A number of U.S. companies have subsidiary branches in New Zealand. Many operate through local agents, and some are in association in joint ventures. The American Chamber of Commerce is active in New Zealand, with its main office in Auckland.

NATIONAL SECURITY
New Zealand has three defense policy objectives--defend New Zealand against low-level threats, contribute to regional security, and play a part in global security efforts. New Zealand has considered its own national defense needs to be modest. Its defense budget generally has provided for selected upgrades in equipment. Shortly after winning the 1999 election, the Labour government canceled a lease-to-buy agreement with the U.S. for 28 F-16 aircraft. However, Labour did embark on a significant defense upgrade and acquisition plan. All three services have benefited from the upgrades/acquisitions. In 2001, the government contracted to purchase 105 LAVIIIs for U.S. $300 million, with delivery completed in 2005. The Army also purchased 321 Light Operational Vehicles to make its forces more mobile. In 2002, New Zealand announced planned upgrades of its P-3 and C-130 Hercules aircraft, and purchased two Boeing 757 aircraft for U.S. $100 million. In 2006 New Zealand contracted with NH Industries to purchase eight NH-90 aircraft to start delivery in 2009. In 2007 they entered an agreement to purchase 12 A-109 light helicopters from Agosta to also start delivery in 2009. The P-3s, C-130s, and B-757s are all currently being upgraded/modified; one of the two B-757's modifications have been completed, and it has returned to service. In 2007, the Navy began accepting delivery of the Project Protector program, with an estimated value of U.S. $250 million, consisting of one multi-role vessel (MRV), two offshore patrol vessels (OPVs), and four inshore patrol vessels (IPVs). The Navy's two ANZAC frigates were to receive ship support systems upgrades in late 2008/early 2009, and the Navy is requesting additional funding for weapons systems upgrades for 2010-2012.

In May 2001, the government announced it was scrapping its combat air force. New Zealand states it maintains a "credible minimum force," although critics maintain that the country's defense forces have fallen below this standard. New Zealand still maintains the fleet of A-4 Skyhawk jets and Aerromacche jets left over from the scrapping of its combat air force. Its attempts to sell the jets have thus far failed.

With a claimed area of direct strategic concern that extends from Australia to Southeast Asia to the South Pacific, New Zealand necessarily places substantial reliance on its defense relationship with other countries, in particular Australia. However, acknowledging the need to improve its defense capabilities, the government in 2005 announced the Defense Sustainability Initiative allocating an additional NZ $4.6 billion (U.S. $319 billion) over 10 years to modernize the country's defense equipment and infrastructure and increase its military personnel. The funding represented a 51% increase in defense spending since the Labour government took office in 1999.

New Zealand is an active participant in multilateral peacekeeping. It has taken a leading role in trying to bring peace, reconciliation, and reconstruction to the Solomon Islands and the neighboring island of Bougainville. New Zealand maintains a contingent in the Sinai Multinational Force and Observers and has contributed to UN peacekeeping operations in Angola, Cambodia, Somalia, and the former Yugoslavia. It also participated in the Multilateral Interception Force in the Persian Gulf. New Zealand's most recent peacekeeping operations experience has been in Timor-Leste, where it initially dispatched almost 10% of its entire defense force and continues to sustain a modest force. New Zealand participated in Operation Enduring Freedom through deployment of security experts as well as the Special Air Service (SAS) elite troops and has fielded a Provincial Reconstruction Team (PRT) in Afghanistan's Bamian province. The SAS were also deployed in Afghanistan from 2001 to 2005. New Zealand continues to sustain its PRT in Afghanistan and deployed a frigate to the Gulf of Oman on three rotations, with the most recent in spring 2008. In support of the effort to reconstruct Iraq, New Zealand deployed an engineering team to the country. In August 2009, the government announced the SAS were to be redeployed to Afghanistan. The first of three rotations arrived in Afghanistan in September 2009. The New Zealand-led PRT will, over the next 3-5 years, draw down its military component and increase its civilian contribution to focus more on reconstruction and capacity building. New Zealand will establish a permanent diplomatic presence in Afghanistan, transferring that responsibility from its mission in Tehran.

New Zealand participates in sharing training facilities, personnel exchanges, and joint exercises with the Philippines, Thailand, Indonesia, Papua New Guinea, Brunei, Tonga, and South Pacific states. It also participates in exercises with its Five-Power Defense Arrangement partners--Australia, the United Kingdom, Malaysia, and Singapore. Due to New Zealand's nuclear-free legislation and policy, defense cooperation with the United States has been limited in certain areas since 1986.

FOREIGN RELATIONS
New Zealand's foreign policy is oriented chiefly toward developed democratic nations and emerging Pacific economies. The country's major political parties have generally agreed on the broad outlines of foreign policy, and the current coalition government has been active in multilateral fora on issues of recurring interest to New Zealand--trade liberalization, environment, and arms control. New Zealand values the United Nations and its participation in that organization.

It also values its participation in the World Trade Organization (WTO); World Bank; International Monetary Fund (IMF); Organization for Economic Cooperation and Development (OECD); International Energy Agency; Asian Development Bank; South Pacific Forum; The Pacific Community; Colombo Plan; Asia Pacific Economic Cooperation (APEC); and the International Whaling Commission. New Zealand also is an active member of the Commonwealth Despite the 1985 rupture in the ANZUS 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 tended to minimize public interest in world affairs. However, growing global trade and other international economic events have made New Zealanders increasingly aware of their country's dependence on stable overseas markets.

New Zealand's economic involvement with Asia has been increasingly important through expanding trade with the growing economies of Asia. New Zealand is a "dialogue partner" with the Association of South East Asian Nations (ASEAN) and an active participant in APEC. On April 7, 2008 New Zealand signed a free trade agreement with China, the first developed country to do so.

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.

New Zealand has focused its bilateral economic assistance resources on projects in the South Pacific island states, especially on Bougainville. The country's long association with Samoa (formerly known as Western Samoa), reflected in a treaty of friendship signed in 1962, and its close association with Tonga have resulted in a flow of immigrants and visitors under work permit schemes from both countries. New Zealand administers the Tokelau Islands and provides foreign policy and economic support when requested for the freely associated self-governing states of the Cook Islands and Niue. Inhabitants of these areas hold New Zealand citizenship.

In 1947, New Zealand joined Australia, France, the United Kingdom, and the United States to form the South Pacific Commission, a regional body to promote the welfare of the Pacific region. New Zealand has been a leader in the organization. In 1971, New Zealand joined the other independent and self-governing states of the South Pacific to establish the South Pacific Forum (now known as the Pacific Islands Forum), which meets annually at the "heads of government" level.

U.S.-NEW ZEALAND RELATIONS
Bilateral relations are excellent. The United States and New Zealand share common elements of history and culture and a commitment to democratic principles. Senior-level officials regularly consult with each on issues of mutual importance. In March 2007, Prime Minister Clark visited Washington, DC, where she met with President George W. Bush, Secretary of State Condoleezza Rice, and Secretary of Defense Robert Gates.

The United States established consular representation in New Zealand in 1839 to represent and protect American shipping and whaling interests. Since the U.K. was responsible for New Zealand's foreign affairs, direct U.S.-New Zealand diplomatic ties were not established until 1942, when the Japanese threat encouraged close U.S.-New Zealand cooperation in the Pacific campaign. During the war, more than 400,000 American military personnel were stationed in New Zealand to prepare for crucial battles such as Tarawa and Guadalcanal.

New Zealand's relationship with the United States in the post-World War II period was closely associated with the Australia- New Zealand-United States (ANZUS) security treaty of 1951, under which signatories agreed to consult in case of an attack in the Pacific and to "act to meet the common danger." During the postwar period, access to New Zealand ports by U.S. vessels contributed to the flexibility and effectiveness of U.S. naval forces in the Pacific.

Growing concern about nuclear testing in the South Pacific and arms control issues contributed to the 1984 election of a Labour government committed to barring nuclear-armed and nuclear-powered warships from New Zealand ports. The government's nuclear-free policy proved incompatible with long-standing, worldwide U.S. policy of neither confirming nor denying the presence or absence of nuclear weapons onboard U.S. vessels.

Implementation of New Zealand's policy effectively prevented practical alliance cooperation under ANZUS, and after extensive efforts to resolve the issue proved unsuccessful, in August 1986 the United States suspended its ANZUS security obligations to New Zealand. Even after President George H.W. Bush's 1991 announcement that U.S. surface ships do not normally carry nuclear weapons, New Zealand's legislation prohibiting visits of nuclear-powered ships continues to preclude a bilateral security alliance with the U.S. The legislation enjoys broad public and political support in New Zealand. The United States would welcome New Zealand's reassessment of its legislation to permit that country's return to full ANZUS cooperation.

Despite suspension of U.S. security obligations, the New Zealand Government has reaffirmed the importance it attaches to continued close political, economic, and social ties with the United States and Australia. New Zealand actively engages in peacekeeping and international security efforts around the world. It has deployed both SAS and regular armed forces personnel to Afghanistan, together with naval and air assets to the Persian Gulf. New Zealand has worked closely with the U.S. to promote free trade in the WTO, the Asia-Pacific Economic Cooperation (APEC) group, and other multilateral fora.

The U.S. and New Zealand work together closely on scientific research in the Antarctic. Christchurch is the staging area for joint logistical support operations serving U.S. permanent bases at McMurdo Station and South Pole, and New Zealand's Scott base, (located just three kilometers from McMurdo Station in the Ross Sea region).

Principal U.S. Embassy Officials
Ambassador--David Huebner
Deputy Chief of Mission--Robert J. Clarke
Political and Economic Counselor--Peter G. Tinsley
Public Affairs Counselor--Mark L. Wenig
Agricultural Attache--Laura Scandurra
Defense Attache--Capt. Dawn Driesbach, USN
Management Officer--Judith Semilota
Consul General (Auckland)--Randy Berry
Consular Affairs (Auckland)--Nicholas Greanias
Senior Commercial Officer (Sydney)--David Murphy

The U.S. Embassy in New Zealand is located at 29 Fitzherbert Terrace, Thorndon, Wellington (tel. 64-4-462-6000, fax 64-4-499-0490). The U.S. Consulate General in New Zealand is located on the 3rd Floor, Citibank Building, 23 Customs Street East, Auckland (tel. 64-9-303-2724, fax 64-9-366-0870). The website for the Embassy and Consulate General is http://newzealand.usembassy.gov/.

TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov, where the current Worldwide Caution, Travel Alerts, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml.

The Department of State encourages all U.S. citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.

Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.

The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4-USA-PPT (1-877-487-2778); TDD/TTY: 1-888-874-7793. Passport information is available 24 hours, 7 days a week. You may speak with a representative Monday-Friday, 8 a.m. to 10 p.m., Eastern Time, excluding federal holidays.

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 800-CDC-INFO (800-232-4636) and a web site at http://wwwn.cdc.gov/travel/default.aspx give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. The CDC publication "Health Information for International Travel" can be found at http://wwwn.cdc.gov/travel/contentYellowBook.aspx.

Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov, the Department of State web site provides timely, global access to official U.S. foreign policy information, including Background Notes and daily press briefings along with the directory of key officers of Foreign Service posts and more. The Overseas Security Advisory Council (OSAC) provides security information and regional news that impact U.S. companies working abroad through its website http://www.osac.gov

Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more.

STAT-USA/Internet, a service of the U.S. Department of Commerce, provides authoritative economic, business, and international trade information from the Federal government. The site includes current and historical trade-related releases, international market research, trade opportunities, and country analysis and provides access to the National Trade Data Bank.

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