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Disclaimer: The information on this web site is issued by the New Zealand Debt Management Office (NZDMO) for informational purposes. It does not contain and is not an invitation or offer to buy or sell securities. Each page on this web site must be read in conjunction with the disclaimer at http://www.nzdmo.govt.nz.
Geographic Distribution of External Trade
New Zealand's trading relationships are becoming increasingly based around Pacific Rim countries. New Zealand's three largest export markets - Australia, Japan and the United States - accounted for 42% of New Zealand's exports and 37% of imports in the year ended 30 September 2008. More recently, the People's Republic of China has emerged as a key source of imports and an important destination for exports.
| Year ended 30 September (dollar amount in millions) |
||||||
|---|---|---|---|---|---|---|
| 2004 | 2005 | 2006 | 2007 | 2008 | 2008 % of Total |
|
| Australia | 6,259 | 6,634 | 6,960 | 7,367 | 9,888 | 23.6% |
| United States | 4,332 | 4,273 | 4,633 | 4,205 | 4,108 | 9.8% |
| Japan | 3,343 | 3,376 | 3,434 | 3,383 | 3,454 | 8.2% |
| China, Peoples Republic of | 1,685 | 1,533 | 1,819 | 1,903 | 2,238 | 5.3% |
| United Kingdom | 1,455 | 1,431 | 1,620 | 1,711 | 1,611 | 3.8% |
| Korea, Republic of | 1,166 | 1,082 | 1,276 | 1,300 | 1,406 | 3.3% |
| Indonesia | 396 | 438 | 580 | 678 | 1,023 | 2.4% |
| Malaysia | 510 | 492 | 476 | 584 | 915 | 2.2% |
| Singapore | 338 | 435 | 498 | 565 | 912 | 2.2% |
| Germany | 707 | 804 | 884 | 748 | 889 | 2.1% |
| Thailand | 355 | 346 | 394 | 520 | 811 | 1.9% |
| Taiwan | 694 | 719 | 778 | 788 | 759 | 1.8% |
| Philippines | 460 | 531 | 496 | 590 | 743 | 1.8% |
| Hong Kong | 558 | 514 | 566 | 568 | 660 | 1.6% |
| Belgium | 585 | 482 | 610 | 518 | 564 | 1.3% |
| Canada | 497 | 525 | 552 | 519 | 529 | 1.3% |
| Italy | 452 | 433 | 493 | 459 | 486 | 1.2% |
| France | 356 | 406 | 368 | 393 | 474 | 1.1% |
| Other Countries | 5,900 | 6,316 | 7,431 | 7,792 | 10,503 | 25.0% |
| TOTAL | 30,048 | 30,770 | 33,868 | 34,591 | 41,973 | 100.0% |
(1) Free on Board value. Including re-exports.
| Year ended 30 September (dollar amount in millions) |
||||||
|---|---|---|---|---|---|---|
| 2004 | 2005 | 2006 | 2007 | 2008 | 2008 % of Total |
|
| Australia | 7,080 | 7,562 | 7,553 | 8,125 | 8,345 | 18.8% |
| China, Peoples republic of | 3,008 | 3,621 | 4,322 | 5,104 | 5,723 | 12.9% |
| United States | 3,763 | 3,324 | 4,775 | 3,822 | 4,223 | 9.5% |
| Japan | 3,562 | 3,577 | 3,577 | 3,476 | 3,838 | 8.7% |
| Singapore | 877 | 1,088 | 1,623 | 1,809 | 2,210 | 5.0% |
| Germany | 1,690 | 1,749 | 1,667 | 1,814 | 1,900 | 4.3% |
| Malaysia | 748 | 774 | 1,174 | 953 | 1,811 | 4.1% |
| Thailand | 572 | 842 | 914 | 1,040 | 1,234 | 2.8% |
| Korea, republic of | 853 | 992 | 1,050 | 1,149 | 1,149 | 2.6% |
| Indonesia | 375 | 490 | 496 | 681 | 1,060 | 2.4% |
| United Kingdom | 1,040 | 1,131 | 1,086 | 1,043 | 1,008 | 2.3% |
| Italy | 776 | 829 | 784 | 847 | 945 | 2.1% |
| Taiwan | 740 | 817 | 699 | 794 | 942 | 2.1% |
| France | 1,100 | 979 | 818 | 633 | 717 | 1.6% |
| Canada | 699 | 394 | 601 | 595 | 603 | 1.4% |
| Saudi Arabia | 206 | 290 | 447 | 574 | 490 | 1.1% |
| Sweden | 328 | 357 | 326 | 320 | 360 | 0.8% |
| Switzerland | 217 | 265 | 230 | 266 | 327 | 0.7% |
| Belgium | 311 | 302 | 269 | 281 | 300 | 0.7% |
| Hong Kong | 154 | 201 | 182 | 187 | 205 | 0.5% |
| Other countries | 3,939 | 4,545 | 4,951 | 4,905 | 6,910 | 15.6% |
| TOTAL | 32,038 | 34,129 | 37,544 | 38,418 | 44,300 | 100.0% |
(1) Value for Duty.
Principal Trading Partners
Australia: Australia is New Zealand's largest trading partner. In the year ended 30 September 2008, two-way merchandise trade amounted to $NZ18.2 billion, with Australia taking 24% of New Zealand's exports and supplying 19% of imports. In the year ending June 2008, two-way trade in services was valued at AUD$6 billion, with New Zealand the source of 5.0% of Australia's services imports and destination for 6.8% of Australia's services exports. Total two-way investment between New Zealand and Australia (Foreign Direct Investment, portfolio and other investment) was NZ$122 billion as at March 2008. Australia is New Zealand's top destination for overseas investment and New Zealand's largest source of foreign investment.
Trade with Australia has flourished under Closer Economic Relations (CER). CER is a series of agreements and arrangements governing bilateral trade and economic relations, built on the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) which took effect on 1 January 1983. Full free trade in goods was achieved on 1 July 1990, five years ahead of schedule. CER was extended to cover trade in almost all services from 1 January 1989. CER creates a market of more than 24 million people. It increases the effective size of New Zealand's domestic market six-fold, and provides Australia with access to another market the size of Queensland. New Zealand's main exports to Australia include crude oil, gold, cheese, refrigerators, timber and wine.
The original ANZCERTA has been extended and added to as the relationship has developed. Other key aspects of CER now include: mutual recognition of goods and occupations, under which most goods legally sold in one country can be legally sold in the other, and persons who are registered to practice an occupation in one country can register to practise an equivalent occupation in the other country; a free labour market, which allows New Zealand citizens and Australian residents to enter, live and work freely in each other's country; and joint agencies in certain regulatory areas.
Building on CER, successive New Zealand and Australian governments have committed to the long term goal of establishing a seamless trans-Tasman business environment - the Single Economic Market (SEM). The SEM builds on the freer trans-Tasman trading environment created by CER by addressing ‘behind the border' barriers to flows of goods, services, capital and people through a broad range of initiatives. Ongoing work to co-ordinate Australian and New Zealand business law takes place within a Memorandum of Understanding. Both sides also co-ordinate on banking regulation and supervision through the Trans-Tasman Council on Banking Supervision. Other initiatives currently in progress include: negotiation of a CER investment protocol; renegotiation of the Australia/New Zealand Double Taxation Agreement; work towards portability of retirement savings; near completion of mutual recognition of bans placed on company directors; harmonisation of accounting standards; and reducing barriers for people at the border.
United States: The United States is New Zealand's second largest single trading partner and bilateral trade amounted to $8.3 billion in the year ended 30 September 2008. Exports to the United States comprised 9.8% of New Zealand's total exports, continuing a downward trend which began in 2003, and the United States supplied 9.6% of New Zealand's total imports, the major categories being heavy industrial goods, aircraft, computers and technology. New Zealand's major exports to the United States are beef, casein, timber, lamb, cheese and a growing range of manufactured goods. The development of trade in dairy products has been constrained by long-standing quotas on these items.
Japan: Japan is New Zealand's third largest single trading partner, with bilateral trade amounting to $7.3 billion in the year ended 30 September 2008. Japan took around 8.2% of total merchandise exports in the year to 30 September 2008. Key exports to Japan include aluminium, wood, dairy products, fish, kiwifruit, meat, vegetables and other fruits.
Japan is also a major supplier of New Zealand's imports, providing 8.7% of total imports in the year to 30 September 2008. Imports from Japan are dominated by technology intensive appliances, including motor vehicles.
European Union: Trade with the members of the European Union, although still very important, is declining. Together, the Union members took 14% of exports (in value terms) and provided 16% of imports in the year to September 2008. Bilateral trade with the European Union amounted to $12.8 billion or around 15% of total exports and imports.
Asian Economies: The economies of the Republic of Korea, Taiwan, Hong Kong, China, Malaysia, Indonesia, Singapore, Thailand and the Philippines are increasingly important trading partners for New Zealand. These economies are all in the top 20 largest single export markets for New Zealand and accounted for around 28% of merchandise exports in the year ended 30 September 2008.