Editing Economy of New Zealand (section)

== Trade ==
{{See also|List of the largest trading partners of New Zealand}}
As of 2024, New Zealand largest trading partners are [[People's Republic of China|China]], [[Australia]], the [[European Union]], the [[United States]] and [[Japan]]. Together, these five partners account for 63% of New Zealand's two-way trade with China alone accounting for over 30% of two-way trade.<ref>{{Cite web |title=New Zealand Trade {{!}} WITS Data |url=https://wits.worldbank.org/CountrySnapshot/en/NZL |access-date=8 September 2024 |website=wits.worldbank.org}}</ref> Total annual exports are worth over US $44 billion well imports are worth over US $49 billion. [[New Zealand Trade and Enterprise]] (NZTE) offers strategic advice and support to New Zealand businesses wanting to export goods and services to other countries.

=== Trade agreements ===
{{main|New Zealand free trade agreements}}
[[File:Map_of_countries_with_which_New_Zealand_has_free_trade_agreements.svg|thumb|300px|right|{{legend-table|lang=en|#ff0000|New Zealand|#00bf00ff|Free trade agreements in force|#ffcc00ff|Free trade agreements concluded but not in force}}]]

Since 1960s New Zealand has pursued free trade agreements with many countries to diversify its export markets and increase the competitiveness of New Zealand's exports to the world.<ref name="FTA">{{cite web|url=http://mfat.govt.nz/Trade-and-Economic-Relations/2-Trade-Relationships-and-Agreements/index.php|title=Trade Relationships and Agreements|publisher=[[Ministry of Foreign Affairs and Trade (New Zealand)]]|date=21 August 2014|access-date=10 December 2014|archive-date=4 December 2015|archive-url=https://web.archive.org/web/20151204203433/http://www.mfat.govt.nz/Trade-and-Economic-Relations/2-Trade-Relationships-and-Agreements/index.php|url-status=dead}}</ref> As well as reducing barriers to trade, Trade Agreements New Zealand has entered into are designed to ensure existing access is maintained. Trade agreements establish rules by which trade can take place and ensure regulators and officials in countries New Zealand is trading with work closely together.<ref name="FTA" />

=== China ===
{{See also|China–New Zealand relations#Economic relations|New Zealand–China Free Trade Agreement}}

China is New Zealand's largest trading partner, buying primarily meat, dairy products and pine logs. In 2013, trade between New Zealand and China was worth NZ$16.8 billion.<ref name="trading partners">{{cite web|url= http://www.stats.govt.nz/browse_for_stats/snapshots-of-nz/nz-in-profile-2014/main-trading-partners.aspx|title= Main trading partners, 2013|publisher=[[Statistics New Zealand]]|access-date= 3 December 2014}}</ref> This has occurred primarily because of soaring demand for imported dairy products, following the [[Chinese milk scandal]] in 2008. Since then demand for milk products has been so strong that in the 12 months to March 2014, there was a 51% increase in total exports to China.<ref>{{cite news|url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11246207 |title=Trade surplus widens as dairy drives exports into China|work=[[The New Zealand Herald]]|date=29 April 2014}}</ref> The increase was facilitated by the [[New Zealand–China Free Trade Agreement]] which came into force on 1 October 2008. Since that year exports to China have more than tripled.<ref>{{cite news|url=http://www.nbr.co.nz/article/china-overtakes-australia-nzs-biggest-export-market-buying-more-meat-dairy-logs-bd-139242|title=China overtakes Australia as NZ's biggest export market|work=[[National Business Review]]|date=26 April 2013|access-date=13 December 2014|archive-date=25 February 2021|archive-url=https://web.archive.org/web/20210225093622/https://www.nbr.co.nz/article/china-overtakes-australia-nzs-biggest-export-market-buying-more-meat-dairy-logs-bd-139242|url-status=dead}}</ref>

=== Australia ===
{{See also|Australia–New Zealand relations#Trade|Closer Economic Relations}}

[[File:Australia New Zealand Closer Economic Relations Trade Agreement 1983 - signed by Laurie Francis & Lionel Bowen (13272074365 cropped).jpg|left|thumb|Australia New Zealand Closer Economic Relations Trade Agreement 28 March 1983 – signed by Laurie Francis & Lionel Brown]]

Australia was New Zealand's largest bilateral trading partner in 2013, when trade between the two countries was worth NZ$25.6 billion,<ref name="trading partners" /> and before China overtook Australia. Economic and trading links between Australia and New Zealand are underpinned by the "[[Closer Economic Relations]]" (CER) agreement, which allows for free trade in goods and most services. Since 1990, CER has created a single market of more than 25 million people. Australia is now the destination of 19% of New Zealand's exports, including light crude oil, gold, wine, cheese and timber, as well as a wide range of manufactured items.

The CER also creates a free labour market which allows New Zealand and Australian citizens to live and work freely in each other's country together with mutual recognition of professional qualifications. This means individuals who are registered to practise an occupation in one country can register to practise an equivalent occupation in the other country. Banking regulation and supervision are co-ordinated through the Trans-Tasman Council on Banking Supervision and there are also ongoing discussions about co-ordinating Australian and New Zealand business law.<ref name="Principal Trading Partners">{{cite web|url=http://www.treasury.govt.nz/economy/overview/2012/22.htm|title=Principal Trading Partners|publisher=[[New Zealand Treasury]]|access-date=23 October 2014|archive-url=https://web.archive.org/web/20141023223647/http://www.treasury.govt.nz/economy/overview/2012/22.htm|archive-date=23 October 2014|url-status=dead}}</ref>

=== European Union ===
{{See also|New Zealand-European Union relations#Trade}}

The European Union is New Zealand's third largest trading partner. A growing number of New Zealand companies use the United Kingdom as a base to supply their products to the European market.<ref>{{cite web|url=https://www.nzte.govt.nz/en/export/export-markets/europe/united-kingdom/ |title=United Kingdom|publisher=[[New Zealand Trade and Enterprise]]}}</ref> However trade with the European Union is declining as demand from Asia continues to grow. The EU takes only 8% of New Zealand exports but provides around 12% of imports.<ref name="Principal Trading Partners"/>

In July 2014, negotiations on the Partnership Agreement on Relations and Cooperation (PARC) between New Zealand and the European Union were concluded.<ref>{{cite web|url=http://www.mfat.govt.nz/Media-and-publications/Features/794-Joint-Statement-EU-NZ.php|title=Joint statement on EU-New Zealand Partnership Agreement|publisher=[[Ministry of Foreign Affairs and Trade (New Zealand)]]}}</ref> The agreement covers the trade and economic relationship between the EU and New Zealand with a view to further liberalisation of trade and investment and acknowledges the intention of the European Union to upgrade its diplomatic presence in New Zealand with a resident ambassador.<ref>{{cite web|url=http://europa.eu/rapid/press-release_STATEMENT-14-83_en.htm|title=Joint declaration by President Van Rompuy, President Barroso and Prime Minister Key on deepening the partnership between New Zealand and the European Union|location=The Hague|date=25 March 2014}}</ref> In 2024 a [[New_Zealand%E2%80%93European_Union_relations#EU-NZ_free_trade_agreement|New Zealand-European Union free trade agreement]] entered into force.

=== United States ===
{{See also|New Zealand–United States relations#Trade}}

The United States was New Zealand's third largest trading partner in 2013, when bilateral trade between the two countries was valued at NZ$11.8 billion,<ref name="trading partners" /> and before it was overtaken by the EU. New Zealand's main exports to the United States are beef, dairy products and lamb. Imports from the US include specialised machinery, pharmaceutical products, oil and fuel. In addition to trade, there is a high level of corporate and individual investment between the two countries and the US is a major source of tourists coming to New Zealand. In March 2012, the United States had a total of $44 billion invested in New Zealand.<ref>{{cite web|url=https://www.nzte.govt.nz/en/export/export-markets/north-america/united-states/|title=The USA|date=20 December 2013 |publisher=[[New Zealand Trade and Enterprise]]}}</ref> A number of US companies have subsidiary branches in New Zealand. Many operate through local agents, with some joint venture associations. The [[United States Chamber of Commerce]] is active in New Zealand, with a main office in [[Auckland]] and a branch committee in Wellington.

According to the Ministry of Foreign Affairs, New Zealand and the United States "share a deep and longstanding friendship based on a common heritage, shared values and interests, and a commitment to promoting a free, democratic, secure and prosperous world".<ref>{{cite web|url=http://www.mfat.govt.nz/Countries/North-America/United-States.php|title=United States of America|publisher=[[Ministry of Foreign Affairs and Trade (New Zealand)]]}}</ref> This common background has not translated into a free trade agreement between the two countries.<ref>{{cite news|url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10633801|title=Why bother with a US FTA?|work=[[The New Zealand Herald]]|date=23 March 2010}}</ref>

=== Japan, Korea and other Asian economies ===
Japan is New Zealand's fourth largest trading partner. In the 21st century, Asian economies have been developing rapidly providing significant demand for New Zealand's exports. Korea, as New Zealand's fifth largest trading partner, is also one of important sources of importation of New Zealand and considered as important export market for New Zealand.

New Zealand also trades with Taiwan, Hong Kong, Malaysia, Indonesia, Singapore, Thailand, India and the Philippines and this now accounts for around 16% of total exports.<ref name="Principal Trading Partners"/> New Zealand initiated a [[free trade agreement]] with Singapore in September 2000 which was extended in 2005 to include Chile and Brunei and is now known as the [[Trans-Pacific Strategic Economic Partnership|P4 agreement]].

=== Relationship with Pacific Islands ===
{{See also|Pacific Agreement on Closer Economic Relations|PACER Plus}}

The Pacific region with numerous islands is New Zealand's sixth largest trading market and is growing every year. In 2011 exports to Pacific Islands were worth over $1.5 billion up 12% on the previous year. Fiji is the biggest individual market followed very closely by Papua New Guinea, French Polynesia and New Caledonia. Goods exported to the islands include refined oil, construction materials, medicines, sheep meat, milk, butter, fruit and vegetables.<ref>{{cite web|url=https://www.nzte.govt.nz/en/export/export-markets/australia-pacific/pacific-islands/|title=Pacific Islands|date=20 December 2013 |publisher=[[New Zealand Trade and Enterprise]]}}</ref> New Zealand also assists Pacific Islands with defence and regional security, and with management of the environment and fisheries.

Because of their small size, the Pacific Islands are some of the most vulnerable environments in the world and are on the receiving end of numerous cyclones every year. When disasters occur, they often have severe social and economic effects which last for years. Since 1992, New Zealand has co-operated with Australia and France to respond to disasters in the Pacific. New Zealand provides emergency supplies and transport, funding for roading and housing and the deployment of specialists to affected areas.<ref>{{cite web|url=http://mfat.govt.nz/Foreign-Relations/Pacific/index.php|title=Pacific|publisher=[[Ministry of Foreign Affairs and Trade (New Zealand)]]|url-status=dead|archive-url=https://web.archive.org/web/20141027154233/http://www.mfat.govt.nz/Foreign-Relations/Pacific/index.php|archive-date=27 October 2014}}</ref>

Through the Ministry of Foreign Affairs and Trade, New Zealand also provides international aid and development funding to help stimulate sustainable economic development in underdeveloped economies. The New Zealand Aid Programme, allocated about $550m a year, is focused primarily on promoting development in the Pacific. The allocation of $550 million represents about 0.26% of New Zealand's [[gross national income]] (GNI).<ref>{{cite web|url=http://www.aid.govt.nz/about-aid-programme|title=About the aid programme|publisher=[[Ministry of Foreign Affairs and Trade (New Zealand)]]|access-date=26 October 2014|archive-date=7 October 2015|archive-url=https://web.archive.org/web/20151007172032/http://www.aid.govt.nz/about-aid-programme|url-status=dead}}</ref>