New Zealand has established significant trade relations with Asia-Pacific countries, contributing to its economic growth. The impacts of the pandemic saw tourism’s direct contribution to New Zealand’s GDP fall to NZD 8.5 billion, or 2.8% of GDP.
However— the country has been working to diversify its economy and expand its trade relations. The agriculture industry has been a major employer, directly employing 8.4 percent (229,566 people) of the New Zealand workforce. The number of people attributed to being directly employed in tourism was 145,032, an increase of 3.2 percent (3,888).
The industry has also supported regional economies and contributed to the country’s GDP. New Zealand’s trade relations with Asia-Pacific countries have played a crucial role in its economic recovery and growth.
New Zealand has a zero-emissions goal enshrined in law, and the country is working to adopt new technologies and investment choices to achieve this goal. Foreign investors can invest in sustainable agriculture practices, such as the introduction of electric vehicle fleets or the development of new technologies to reduce greenhouse gas emissions.
Deepening trade ties with Asia brings both opportunities as well as points of sensitivity. Beyond aiming for ambitious deals, successfully realizing the benefits depends on building connections, networks and cultural familiarity across the region. As economic links strengthen, more holistic Asia capability across business, government and society will become vital for New Zealand.
China, Australia and Japan are New Zealand’s top 3 trade partners, accounting for over 40% of total trade. Exports to China tripled over the last decade, now reaching NZ$23 billion.
New Zealand has pursued several trade agreements expanding ties in Asia-Pacific, notably CPTPP and RCEP. These cement access for NZ exporters across key Asian economies.
Beyond goods trade— services trade and investment links grow between New Zealand and Asia. In 2021, services exports reached NZ$7.4 billion. Over NZ$107 billion of investment came from Asia.
Navigating relations with both China and traditional allies is an increasing priority. New Zealand aims to strike an independent foreign policy stance in the region. Overall New Zealand’s deepening economic integration with Asia is seen as crucial.
