New Zealand and Australia are close neighbours. Not physically (Auckland is over 2000km from Sydney), but culturally, historically and through the extensive family and personal relationships that stretch across the Tasman Sea and back again.
Over 600,000 New Zealanders live in Australia, 60,000 Australians in New Zealand and citizens of both countries enjoy almost unrestricted access to live and work on either side of ‘the Ditch’. The Closer Economic Relations Trade Agreement (ANZCERTA) between the two countries was signed in 1983, creating a free trade zone, with zero tariffs for goods and services originating in Australia or NZ, harmonisation of trans-Tasman food standards, mutual recognition of goods and occupations, and a protocol to two-way liberalise investment.
Add in to the mix a history of shared military commitments during the major conflicts of the 20th and 21st centuries, together with mutual membership of the ‘5 Eyes’ intelligence partnership. That shared history will be on display on April 25th, when both countries commemorate the day in 1915 when ANZAC troops first came ashore at Gallipoli in World War I. 106 years on, it remains a focal point of national remembrance on both sides of the Tasman.
Leaving rugby aside for the moment (please!), Australia and New Zealand have enjoyed the closest of bilateral relationships.
But that historically tight relationship is under strain like never before, and the reason for that can be summed up in one word: China.
While Australia remains in China’s diplomatic dog house, enduring a major deterioration in trade relations with its largest export market, New Zealand’s trade relationship with China goes from strength to strength. China is New Zealand’s largest trading partner, and in January this year the two countries signed an upgraded Free Trade Agreement (FTA).
New Zealand’s economy is heavily dependent on tourism and agricultural exports, and China is NZ’s largest goods market, largest source of international students, second largest source of tourists (behind Australia), and a significant foreign investor. At a time when tourism numbers have crashed due to pandemic restrictions, the $10 billion of agricultural exports that New Zealand sends to China annually takes on even greater significance
But New Zealand’s current diplomatic problems with Australia (and other ‘5 Eyes’ partners) rests not with New Zealand’s trade success, but with a growing perception that New Zealand has gained China’s approbation at the expense of its commitment to the shared values of its traditional alliance partners in Australia, the US, UK and Canada. New Zealand has opted to not join those countries in presenting a united front of criticism of China’s actions in Hong Kong and Xinjiang, and New Zealand’s Minister for Foreign Affairs Nanaia Mahuta recently signalled that NZ considered such matters to be “out of the remit of the Five Eyes”. Instead, NZ would respect China’s “particular customs, traditions and values”.
This statement came on top of a suggestion from New Zealand’s Trade Minister that if only Australia would follow New Zealand’s approach and show China’s government “respect” and “a little more diplomacy”, Australia too would be rewarded by China as New Zealand had been.
In other words, if you’re going to criticise China, count New Zealand out.
And all this, of course, is music to Beijing’s ears. The Chinese Communist Party (CCP) organ, the Global Times, has stepped up its attacks on the ‘5 Eyes’ partnership as an “axis of white supremacy”, suggesting racism, colonialism and anti-China sentiment lies at the heart of the alliance. But it specifically exempted New Zealand from the criticism of the ‘5 Eyes’ countries – a logical non sequitur, but highlighting China’s desire to drive a wedge into ‘5 Eyes’ unity.
The message from Beijing is clear: oppose or criticise China and suffer trade and diplomatic pain; keep quiet about China’s human rights abuses in Hong Kong and Xinjiang, or its regional expansionist policies, and be rewarded with tasty trade deals.
New Zealand seems to have made its choice.
Sydney Avenue Consultants 