New Zealand-Asia Relations | Research & Encyclopedia Articles

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New Zealand Summary

New Zealand-Asia Relations

Asia, particularly East Asia, has recently become one of New Zealand's most important focuses of trade and diplomatic relationships. This international tie is bound to become even more important in the future. The Asia that New Zealanders generally refer to includes the area from the Indian subcontinent to the Japanese archipelago but excludes Russian Siberia. This region covers the vast area of diverse environmental conditions and the wide range of linguistic, ethnic, and cultural characteristics found in East Asia, Southeast Asia, South Asia, and Central Asia.

Before the arrival of European settlers in New Zealand, the indigenous Maori people apparently had no contact with Asia. It is generally accepted that Polynesians, of whom the Maori represent one subgroup, migrated from Southeast Asia to the islands of the Pacific; the Maori may have arrived in New Zealand around 800 CE. During the nineteenth century, early European settlers (mainly British) in New Zealand had little interest in or contact with Asia other than the importing of tea from China.

In the twenty-first century, New Zealand's relationship with Asia is concentrated on East Asian countries: Japan, Korea, and China, including Hong Kong and Taiwan. Contrasting geographical locations and industrial characteristics of East Asia and New Zealand complement each other. Industrialized East Asia is a good market for New Zealand's agricultural products (which, since New Zealand is in the Southern Hemisphere, can be supplied during East Asia's off season), and New Zealand, for its part, imports diverse manufactured goods from East Asia at relatively low prices. Presently, New Zealand is eager to foster close relationships with Asia based on trade, immigration, and tourism, because much of New Zealand's commodity exports depend on the East Asian market conditions. This enthusiasm is demonstrated in the New Zealand government's launching of the Asia 2000 Foundation as an arm of the Ministry of Foreign Affairs and Trade in 1994. The foundation aims to improve New Zealanders' awareness of Asia and to build beneficial relationships with Asia through making grants and engaging in other business, educational, and cultural activities.

In recent years, there have been dramatic changes in New Zealand's trade, immigration, and diplomatic relationships with Asia.

Trade

In the early to mid-twentieth century, Britain was the guaranteed market for almost all of New Zealand's commodities, at one stage taking more than 90 percent of New Zealand's exports. New Zealand could rely on her "mother country" and did not have to be concerned with the rest of the world. However, ever since Britain joined the European Community in 1973, New Zealand's exports to Britain have declined. While Britain took 36 percent of New Zealand's exports in 1970, it took only 14 percent in 1980. From 1973, New Zealand realized it could no longer expect Britain to continue to be its principal and guaranteed market and was forced to take an independent road. It therefore looked to formerly unfamiliar parts of the world to set up new diplomatic posts and find new trading partners. At this juncture, New Zealand began to pay special attention to Asia, especially Japan and other East Asian countries. However, replacing Britain's role with another single country was neither desirable nor possible; neither Japan nor the United States was willing to be a guaranteed market for New Zealand in the way that Britain was.

During the 1980s, Britain's role in New Zealand's overseas trade dropped even further, so that in 1985 it imported a mere 9 percent of New Zealand's exports, dropping to become New Zealand's fourth largest market, after Australia, Japan, and the United States. At the same time, New Zealand's exports to East Asia (especially Japan and Korea) were increasing fast. New Zealand's exports to Britain dropped to only 6 or 7 percent in the 1990s, while Japan came to take between 15 and 18 percent of New Zealand's exports from 1985 onward. Japan has been New Zealand's second largest export market since 1970. The most common imports by the Japanese are meat, aluminum, wool, dairy products, and forestry products.

Over the last decade, the South Korean market has grown dramatically to become New Zealand's fifth largest market. New Zealand's exports to Korea grew from a mere NZ$1.6 million in 1970 to more than a billion New Zealand dollars in 1996, which accounted for slightly over 5 percent of New Zealand's exports. These exports consisted of mainly meat, wool, deer antler velvet, and forest products.

China became New Zealand's sixth largest market in 1998–1999, importing NZ$625 million in goods. Closely following China were Hong Kong (NZ$602 million) and Taiwan (NZ$580 million), which ranked as New Zealand's eighth- and ninth-largest export markets in 1998–1999. In total, about 30 percent of New Zealand's exports are currently absorbed by the East Asian market.

In return, New Zealand imports mostly manufactured goods from these East Asian countries. From Japan and Korea, cars and electronic goods are among the main import items, while electronic goods and computers are imported from Taiwan and Hong Kong and various manufactured goods, including textiles and toys, are imported from China.

The main trading countries from Southeast Asia, which makes up about 8 percent of the market for New Zealand's exports, are Malaysia and Singapore. New Zealand's trade relationships with the remaining parts of Asia are only modest.

Immigration

The earliest emigrants from Asia to New Zealand were the Chinese laborers who worked in the Otago gold mines and who numbered more than five thousand by the 1870s. The Chinese were initially welcomed but soon came to experience immigration restrictions and discrimination, which resulted in the majority of these laborers leaving New Zealand. Most present-day Chinese–New Zealanders are recent immigrants. In 1986, New Zealand changed its immigration policy, and Asians didn't face more restrictions than Europeans did.

According to the 1986 New Zealand census, at that time there were about fifty-five thousand Asians, and these identified themselves as mostly Chinese or Indians. However, by the next census in 1991, the Asian population had jumped to ninety-nine thousand, with a much more diverse national background. The adoption of business migration and the general points system (which assesses immigration applicants by awarding them points based on such factors as educational and professional qualifications, work experience, and age) in November 1991 resulted in a dramatic increase of Asian immigration to New Zealand, and the total Asian population reached 140,000 in 1996. By allowing business migration, New Zealand hoped to attract wealthy Asians who would invest funds in New Zealand, thereby boosting the economy.

When the recent immigrants came in the 1990s, they experienced some discrimination by the New Zealanders of European origin, who were rather taken aback by the sudden influx of Asians they thought had arrived to stay. But many of the immigrants, especially those with marketable skills and good financial support, have moved on to a third country, seeking jobs in Australia, the United States, and Canada, or going back to their countries of origin. Nevertheless, emigration from Asia has become an important element in New Zealand-Asia relationships.

Diplomatic Relations

In 1998 New Zealand had fourteen diplomatic and consular posts in Asian countries, and the number of diplomatic representatives in those posts is increasing. This trend closely reflects the strengthening of trade and immigration ties more than political, security, or other bilateral interests. New Zealand has diplomatic posts in Tokyo, Seoul, Beijing, Hong Kong, Hanoi, Manila, Jakarta, Bangkok, Kuala Lumpur, Singapore, and New Delhi.

New Zealand has been active in Asian international organizations. New Zealand is an original dialogue partner of ASEAN (the Association of Southeast Asian Nations) and participates in the ASEAN Regional Forum to discuss and cooperate in regional security issues. New Zealand is also a founding member of the APEC (Asia Pacific Economic Cooperation) forum, and in September 1999 New Zealand hosted a meeting of APEC leaders at Auckland. As New Zealand looks to the future, it increasingly aligns itself with Asia; indeed, in 1996, Prime Minister Jim Bolger even called New Zealand a part of Asia.