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Sunday, 08 November 2009   |   Last Updated: 27 July 2009

 

New Zealand

New England FlagThe United States and New Zealand continue to meet regularly under their Trade and Investment Framework Agreement (TIFA) and in other fora to discuss bilateral, regional and multilateral issues.

During the most recent TIFA meeting in 2007, the two sides discussed a range of bilateral issues including agriculture, sanitary and phytosanitary standards, biotechnology, intellectual property protection, pharmaceutical policy, customs cooperation, and other issues. The two governments also held a separate dialogue on agricultural issues under the TIFA.

In addition, the United States and New Zealand continued to consult closely on advancing the APEC agenda, bringing the WTO Doha Development Agenda negotiations to a successful conclusion, and regional trade policy developments.

In September 2008, the United States announced its intention to begin negotiations to join the Trans-Pacific Strategic Economic Partnership (TPP) agreement, a high-standard FTA between Singapore, Chile, New Zealand, and Brunei Darussalam, intended to serve as a vehicle for Trans-Pacific economic integration. Shortly after the U.S. decision to join the negotiations, Australia, Peru, and Vietnam indicated their interest in participating as well. A public hearing on TPP was held on March 4, 2009.

The Administration is currently reviewing its overall trade strategy, including the TPP.

U.S.-New Zealand Trade Facts

U.S. goods and services trade with New Zealand totaled $9.1 billion in 2007 (latest data available). Exports totaled $4.3 billion; Imports totaled $4.8 billion. The U.S. goods and services trade deficit with New Zealand was $438 million in 2007 (latest data available).

New Zealand is currently our 55th largest goods trading partner with $5.7 billion in total (two ways) goods trade during 2008. Goods exports totaled $2.5 billion; Goods imports totaled $3.2 billion. The U.S. goods trade deficit with New Zealand was $637 million in 2008.

Trade in services with New Zealand (exports and imports) totaled $3.2 billion in 2007 (latest data available). Services exports were $1.5 billion; Services imports were $1.7 billion. The U.S. services trade deficit with New Zealand was $139 million in 2007.

Exports

New Zealand was the United States' 58th largest goods export market in 2008.

U.S. goods exports to New Zealand in 2008 were $2.5 billion, down 10.0% ($281 million) from 2007, but up 68% from 1994 (the year prior to Uruguay Round).

The top export categories (2-digit HS) in 2008 were: Machinery ($472 million), Aircraft ($326 million), Special Other (low value shipment) ($242 million), Electrical Machinery ($192 million), and Vehicles ($174 million).

U.S. exports of agricultural products to New Zealand totaled $220 million in 2008. Leading categories include: fresh fruit ($32 million), pet foods (dog and cat food) ($27 million), and processed fruit and vegetables ($21 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to New Zealand were $1.5 billion in 2007 (latest data available), 19.0% ($242 million) more than 2006 and 84% ($691 million) greater than 1994 levels. Travel, and other private services (business, professional, and technical services) categories accounted for most of U.S. exports in 2007.

Imports

New Zealand was the United States' 60th largest supplier of goods imports in 2008.

U.S. goods imports from New Zealand totaled $3.2 billion in 2008, up 1.9 % ($58 million) from 2007, and up 123% over the 14 years.

The five largest import categories in 2008 were: Meat (frozen beef) ($758 million), Albumins, Modified Starch and Glue (mostly caseins) ($358 million), Dairy, Eggs, and Honey (milk protein concentrate) ($323 million), Wood ($177 million), and Machinery ($170 million).

U.S. imports of agricultural products from New Zealand totaled $1.8 billion in 2008, the 14th largest supplier of Ag imports. Leading categories include: red meats, fresh/chilled/frozen ($755 million), and dairy products (excluding cheese) ($655 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $1.7 billion in 2007 (latest data available), 0.2% ($4 million) up from 2006, and up 191% ($1.1 billion) from 1994 level. Tourism categories (passenger fares and travel) categories accounted for most of U.S. services imports from New Zealand.

Trade Balance

The U.S. goods trade deficit with New Zealand was $637 million in 2008, a 113.0% increase ($338 million) over 2007.

The United States has a services trade deficit of $139 million with New Zealand in 2007 (latest data available).

Investment

U.S. foreign direct investment (FDI) in New Zealand (stock) was $5.4 billion in 2007, down 9.9% from 2006.

U.S. direct investment in New Zealand is led by the manufacturing and finance sectors.

New Zealand FDI in the United States (stock) was $1.5 billion in 2007 (latest data available), up 157.6% from 2006.

Reported New Zealand FDI in the United States was led by the wholesale trade sector.

Sales of services in New Zealand by majority U.S.-owned affiliates were $3.0 billion in 2006 (latest data available), while sales of services in the United States by majority New Zealand-owned firms were $592 million.

*NOTE: Refers to private services trade not including U.S. military sales, direct defense expenditures, and other miscellaneous U.S. government services.