The Trans-Tasman Relationship: a NZ Perspective | Scoop News
“The Trans-Tasman Relationship: a New Zealand Perspective”. Friday 29 June. Assistant Vice-Chancellor, Professor Alistair Fox, Australian. The Hon. Phil Goff, New Zealand's Minister of Foreign Affairs and Trade considers the proposition: are New Zealand and Australia moving. There is considerable churn in the trans-Tasman migration flow. In the past cornerstone of the relationship from the New Zealand perspective while. Australia .
While New Zealand was left out, they were not entirely forgotten. In, and preferential trade arrangements between the two countries had been negotiated, although they do not seem to have markedly affected actual trade. See Lloyd for a details of the two arrangements. Export Structures Part of the divergence in the contemporary economies, arises from their export structures.
We have to be careful here. It might seem likely that two economies with the same export structure would not trade with each other.
However if those exports were manufactures rather than commoditiesthere would likely to be considerable intra-industry trade so that they would export and import similar products between them. As it happens, intraindustry trade is rising both internationally, and in the case of Australia and New Zealand see below. However in both countries commodities unprocessed or semi-processed still playa greater exporting role than manufactures. Thus Australia is an exporter of wheat and other grains, wool and pastoral products, and minerals.
Australia–New Zealand relations - Wikipedia
Of this list New Zealand only exports the pastoral products in great quantities, with forestryhorticulture, and fishing more important. Even the characteristics of the wool exports of the two countries differbecause Australian fine wools are more used for clothing, New Zealand cross bred wools for carpets.
Commodities do not enter intra-industry trade as typically as manufactures except for seasonal supply of fresh foods. However there is a second effect. Commodities experience much wider swings in their world prices, which means that fluctuations in the terms of trade have a significant impact on the business cycle.
Secular shifts also are more important. Since the two countries have different commodity compositions, and since commodity prices do not move exactly together, this means that the two countries will experience different externally driven business cycles. That the two economies were at different stages in the business cycle in the late 19th century is not unique. By the late s their cycles appeared to be moving lock step together.
US or Japan or the world economy. But this pattern was broken in the mid s, probably as a result of the two economies embarking upon different economic strategies. An Evolving Trade Relationship It is evident that there has been greater trade between the two economies.
Although the 20 percent share of New Zealand imports from Australia has been relatively constant, the share of Australian imports to New Zealand has risen from 1. A quarter of a century ago Australia used to export three times the value of goods to New Zealand. Today the trade balance is almost equal. This could be attributed to the NAFTA and CER trade agreements, but while I do not want to undervalue the role of such political factors, I suspect they represent an evolving response to world and domestic economic conditions, rather than being entirely exogenous to economic considerations.
The industrialization strategy New Zealand embarked upon from the s was at first inward looking, concentrating on import substitution. But the intention was — as one of its architects W.
Sutch explained — to move to manufactured exporting. The centre of the industrialization debate from the early s was not about the extent of manufacturing exporting, but about the extent and role of border protection and other interventions. While in the due course the maturation of the manufacturing sector would have generated the exports, the process was forced upon New Zealand from the mid s, following the structural fall in the terms of trade that occurred then Easton The manufacturing part of the diversification story is a complex one, but it had two major components.
First was added value exporting, in which there was further processing of the commodities already being exported, or coming on stream. The second component of export manufacturing was the more stand alone general manufacturing mainly supplying Australia and Oceania. This second element was an Tasmanization of a process which had been going on within each country.
The Trans-Tasman Relationship: a NZ Perspective
The same processes means as trans Tasman transport costs come down, and ease of carriage improves we may see a similar concentration into a single Australasian centre.
The relocations heartache which rural people have experienced will not stop at the metropolitan centres, but the concentration need not necessarily be in Australia. Indeed the faster growth of New Zealand exports to Australia demonstrates otherwise. From this perspective NAFTA, and indeed CER, may be interpreted as response to underlying economic change rather than as leading it, although I hasten to say it requires political vision to identify and respond to economic change rather than to attempt to suppress it.
Essentially it consisted of a limited list of products which could be traded between the countries with a zero tariff. As humorously illustrated by Lionel Bowen in the opening address to the conference, annual negotiations evolved around identifying products which the interest groups on each side agreed could be traded without harming their interest.
At one stage both sides were able to obtain agreement that it would not harm either if seawater were to be traded between the countries, and so seawater was solemnly added to the list of tariff free products.Aust vs NZ Mens Netball 1st Test Trans Tasman 2014
By the late s the Australians were getting impatient with this process. Moreover because the arrangements focussed on tariffs, it did not prohibit subsidies, and in any case an Australian exporting facing a zero tariff still might be unable to enter the New Zealand market because there was no accompanying import licence. Out of this impatience grew CER, which was a much broader free trade approach.
Whereas in the case of NAFT A there had been a positive list of what could be free traded, in the case of CER the list was of what could not, and from the beginning the negative list contained few items.
For New Zealand CER represented an acceptance — by the manufacturing sector in particular — that the future did not lie in supplying a local market, but that to survive they would have to seek larger, dynamic, markets overseas. That change of perception arose from the confidences of their export successes from the s, not least due to NAFTA.
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Behind this was a change in the isolationist perception of New Zealand to a realization that New Zealand was a part of a larger world and an appreciation by an increasing proportion of New Zealanders of the benefits of international travel and the variety and quality of international goods and services. We must await a future Sinclair to document the change, but my impression is that between the s and the s New Zealanders became much more outgoing in international terms.
In the Olympicsthe Festival of Empire and the Olympics the two countries were represented at least in sporting competition as the unified entity " Australasia ". Both continued to co-operate politically in the 20th century as each sought closer relations with the United Kingdom, particularly in the area of trade.
This was helped by the development of refrigerated shippingwhich allowed New Zealand in particular to base its economy on the export of meat and dairy — both of which Australia had in abundance — to Britain.
The two nations sealed the Canberra Pact in January for the purpose of successfully prosecuting war against the Axis Powers in World War II and providing for the administration of an armistice and territorial trusteeship in its aftermath. The Agreement foreshadowed the establishment of a permanent Australia—New Zealand Secretariat, it provided for consultation in matters of common interest, it provided for the maintenance of separate military commands and for "the maximum degree of unity in the presentation This was partially a result of Britain joining the European Economic Community in the early s, thus restricting the access of both countries to their biggest export market.
The expedition was sent by Governor Bourke from Sydney and was subsequently criticised for use of excessive force by a British House of Commons report in Promised settlement on confiscated land, more than Australians were recruited. Other Australians became scouts in the Company of Forest Rangers.
Independent of the sense of Empire or Commonwealthboth nations in the second half of the twentieth century otherwise provided contingents in support of United States strategic aims in the Korean WarVietnam Warand Gulf War. Together Australia and New Zealand saw their first major military action in the Battle of Gallipoliin which both suffered major casualties.
For many decades the battle was seen by both countries as the moment at which they came of age as nations.
The Economic Relationship Between Australia & New Zealand
Canberra memorial World War II was a major turning point for both countries, as they realised that they could no longer rely on the protection of Britain. Subsequently, both countries sought closer ties with the United States.
Although no such attack occurred until, arguably, 11 SeptemberAustralia and New Zealand both contributed troops to the Korean and Vietnam Wars. Australia's contribution to the Vietnam War in particular was much larger than New Zealand's ; while Australia introduced conscription New Zealand sent only a token force.
An Australian flag flies atop the eastern pylon and a New Zealand flag flies atop the western pylon. A bronze memorial statue of a digger holding a Lee—Enfield rifle pointing down was placed on the western end of the bridge on Anzac Day in