May 19-21 saw several hundred delegates from across the United States and New Zealand gather in Washington for the biannual U.S.-New Zealand Pacific Partnership Forum. The forum, organized by the U.S.-New Zealand Council, has been instrumental in helping to normalize relations between the two countries, which had cooled significantly following New Zealand’s 1985 ban on nuclear-powered or nuclear weapons-capable naval vessels visiting its ports.
New Zealand’s Labour Party came to power in 1984 pledging to make the country a nuclear-free zone. That policy found wide public backing, but presented a dilemma for New Zealand’s ally, the United States. The situation came to a head in February 1985 when a port visit request by the USS Buchanan was refused because the ship was capable of launching nuclear weapons and the United States refused to reveal whether it carried any. New Zealand officially declared itself a nuclear-free zone in 1987, and the administration of President Ronald Reagan responded by suspending the United States’ obligations to the country under the Australia, New Zealand, United States Security Treaty. Thus began a chilly period in relations between the two allies.
But times have changed for the better.
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- Australia’s budget released, deficit larger than expected
- Sale of shares in New Zealand state-owned utility begins
- French Polynesia placed on UN decolonization list
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- Center for a New American Security's annual conference
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The U.S.-New Zealand Partnership: An Alliance in All but Name
By Jack Georgieff (@JackGeorgieff), Visiting Fellow, Japan Chair, CSIS
May 19-21 saw several hundred delegates from across the United States and New Zealand gather in Washington for the biannual U.S.-New Zealand Pacific Partnership Forum. The forum, organized by the U.S.-New Zealand Council, has been instrumental in helping to normalize relations between the two countries, which had cooled significantly following New Zealand’s 1985 ban on nuclear-powered or nuclear weapons-capable naval vessels visiting its ports.
New Zealand’s Labour Party came to power in 1984 pledging to make the country a nuclear-free zone. That policy found wide public backing, but presented a dilemma for New Zealand’s ally, the United States. The situation came to a head in February 1985 when a port visit request by the USS Buchanan was refused because the ship was capable of launching nuclear weapons and the United States refused to reveal whether it carried any. New Zealand officially declared itself a nuclear-free zone in 1987, and the administration of President Ronald Reagan responded by suspending the United States’ obligations to the country under the Australia, New Zealand, United States Security Treaty. Thus began a chilly period in relations between the two allies.
But times have changed for the better.
The theme of the recent U.S.-New Zealand conference was “What’s Next?” A key component of the meeting was the involvement of some 40 young people from New Zealand and the United States, including this writer, as “future partners” to partake in discussions with top government officials, business people, journalists, and consultants. The conference had an energy that suggested that key stakeholders may be ready to broaden and deepen the bilateral relationship beyond the already-strong historical bonds solidified while fighting alongside each other in World War II. U.S. ambassador to New Zealand David Huebner put it most succinctly: “The relationship is the now the best it has ever been.”
Huebner’s words should not be taken lightly. Relations began to thaw during President George W. Bush’s administration and warmed up further once Barack Obama became president in 2009. Officials in both administrations, especially Secretary of State Hillary Clinton, former secretaries of defense Robert Gates and Leon Panetta, former deputy secretary of state Richard Armitage, and former assistant secretaries of state Christopher Hill and Kurt Campbell, can take a great deal of credit for helping to thaw relations.
For years, many officials involved in the relationship were unable to move beyond the cryogenic freeze in which the two countries found themselves following the 1985 nuclear ship ban. That began to change after New Zealand sent troops to Afghanistan in 2001, prompting a reevaluation in Washington of its relations with Wellington. In 2005, Assistant Secretary of State Hill called the rift over the nuclear issue “a bit of a relic,” and in 2008 then-secretary of state Condoleezza Rice visited Auckland.
Once Obama took office, defense ties improved markedly. Together, the 2010 Wellington and 2012 Washington Declarations laid the basis for a renewed security relationship. In September 2012, Secretary of Defense Panetta announced that New Zealand war ships would again be able to visit U.S. bases, and on May 30, the HMNZS Te Mana became the first to do so when it steamed into Guam. Meanwhile, Ambassador Huebner, as an avid user of social media, has played a major role in recent years in expanding the bilateral relationship to other stakeholders in New Zealand society, especially young people and ethnic minorities.
With this backdrop in mind, two key issues from the conference are worth highlighting: trade and security. New Zealand has long been a cheerleader for free trade and instrumental in launching the current negotiations for the Trans-Pacific Partnership (TPP) agreement. Much of the focus of the forum was on a possible timeline for completing the agreement. Minister of Trade Tim Groser was confident that a November 2013 deadline is still achievable.
A panel of six former U.S. trade representatives was not so optimistic. Their broad consensus: stay tuned for a 2014 or 2015 agreement. Nonetheless, negotiators from the United States and New Zealand are working together closely to shepherd the TPP through the last remaining hurdles. This cooperation has been a key factor in the renewal of bilateral relations in recent years.
The bilateral security relationship is now comparable to pre-1985 levels of cooperation. Speaking at the conference, former deputy assistant secretary of state Randy Schriver labeled this cooperation an alliance “in all but name.” He was the only speaker who assessed the security relationship in this way.
Other panelists noted that resuming a full alliance would not necessarily be in the interests of either the United States or New Zealand. They argued that New Zealand finds value in its independent status in its relations with China, India, and other Indo-Pacific powers.
So where should the United States take the relationship from here?
The broadening and deepening of the partnership that has been under way for the better part of a decade needs to continue. As the United States continues to face a shrinking defense budget, it can be expected to ask more of partners such as New Zealand. The notion of “forward partnering” is likely to be a strategic framework that the United States will use to effectively and efficiently maintain its rebalance toward Asia.
New Zealand will not give up its antinuclear stance for the sake of an alliance with the United States. Even trying to somehow reestablish full alliance status without addressing the nuclear issue would spark domestic opposition in New Zealand, where the country’s independent foreign policy is widely endorsed. But the two countries are still exploring new avenues for cooperation.
As the last Kiwi troops withdraw from Afghanistan, New Zealand is looking for opportunities to cooperate with the United States in peacekeeping activities, perhaps through the United Nations. Wellington is working with Washington to deepen U.S. engagement in the South Pacific diplomatically and through development assistance projects. The United States, meanwhile, is looking for New Zealand to become more active in Asian security by cooperating in areas like cybersecurity and perhaps by supporting reforms in Myanmar.
The last remaining major hurdle for the two countries is to find a way for a U.S. naval or Coast Guard vessel to visit New Zealand. Prime Minister John Key said in 2012 that New Zealand would welcome a visit from a U.S. Coast Guard ship. With the Te Mana on its way to Guam, Foreign Minister Murray McCully said on May 26 that a reciprocal visit from the U.S. Coast Guard is "entirely in their [the United States’] hands.” Surely, the two countries’ diplomats can find a way to achieve this feat without violating sensitivities on either side of the Pacific.
Jack Georgieff is a visiting Thawley Scholar from the Lowy Institute with the office of the Japan Chair at CSIS. He can be reached at jack.georgieff@gmail.com.
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Australia
Australia’s budget released, deficit larger than expected. Treasurer Wayne Swan released Australia’s 2013 federal budget on May 14, unveiling an expected deficit of $17.4 billion. The shortfall is a major disappointment for Prime Minister Julia Gillard’s government, which had promised to bring the budget back to surplus before admitting that a strong Australian dollar and weakening mineral exports made that unfeasible. The budget increases defense spending by $9.7 billion while postponing plans to increase foreign aid.
Ford shuttering Australian auto plants. Ford’s Australian subsidiary announced on May 23 that it would close its two manufacturing plants in the state of Victoria by October 2016. High production costs, as well as the constraints of a small Australian market, have caused Ford Australia to post $580 million in losses over the past five years. The company’s decision to end production in Australia will result in the eventual loss of around 1,200 jobs.
Timor-Leste accuses Australia of spying. Timor-Leste on May 29 accused Australia of spying on its government during 2004 negotiations over natural gas revenue sharing. Timor-Leste alleges that Australia’s then-foreign minister Alexander Downer personally ordered the Australian Secret Intelligence Service to bug a cabinet room during bilateral talks. The Timorese government claims that the revenue-sharing treaty signed in 2004 is subsequently invalid.
Intelligence organization, other government agencies hacked. The Australian TV show “Four Corners” on May 27 reported that several government agencies, including the Australian Security Intelligence Organization (ASIO), have been compromised by hacking. “Four Corners” reported that the attack was traced to a server in China. The Australian reported on May 29 that the hackers stole the blueprints for ASIO’s new Canberra headquarters in 2009 or 2010. Beijing has called the allegations of Chinese complicity in the attack groundless. The Australian government has refused to comment directly on the matter.
Australia, Japan hold first joint live-fire exercises. Australia hosted Japanese soldiers for live-fire exercises for the first time from May 18 to 26. Fourteen troops from each nation took part in Operation Southern Jackaroo, practicing marksmanship and urban combat exercises in and around Melbourne. Australian Defense Force officials said that the exercises reflected “the shared commitments of Australia, Japan, and the [United States] to strengthening defense and security cooperation.”
Legislators call for independence from British monarchy. Treasurer Wayne Swan and former opposition leader Malcolm Turnbull on June 3 called for Australia to formally split from the British monarchy and form an independent republic. They were speaking at the launch of a book by Australian experts that seeks to reignite debate on the topic. Australia gained independence from the United Kingdom in 1901, but the queen remains head of state and her governor general holds power to appoint and dismiss Australia’s prime minister in some circumstances. Australians in 1999 voted 55 to 45 percent to maintain the monarchy.
New Zealand
Sale of shares in state-owned utility begins. The sale of just under half the shares in state-owned electricity utility Might River Power began on May 10. The long-anticipated sale is part of a government drive to raise revenue by privatizing state-owned companies and is expected to earn the government between $4 billion and $5.6 billion. The initial share price was lower than expected, which the government of Prime Minister John Key blamed on investor fears that the opposition Labour and Greens parties will roll back the privatization if elected.
China blocks importation of New Zealand meat. Chinese officials impounded millions of dollars’ worth of fresh and frozen meat exported from New Zealand in May, demanding further documentation before eventually releasing some of it. Wellington announced on May 27 that Beijing had been holding the meat at customs for the previous two weeks. The delays appear to be in response to recent revelations that rat, mink, and fox meat is being passed off as lamb in China. Lamb is one of New Zealand’s top exports.
Security symposium urges New Zealand to contribute more to UN peacekeeping. Experts from a New Zealand security symposium on May 22 urged the government to increase its contributions to UN peacekeeping operations. The group, led by former head of the Ministry of Defense’s International Relations Branch Paul Sinclair, said peacekeeping would give New Zealand a means of contributing to international security following its withdrawal from Afghanistan. New Zealand is seeking a nonpermanent seat on the UN Security Council in 2014.
Pacific Islands
French Polynesia placed on UN decolonization list. The UN General Assembly voted on May 17 to place French Polynesia on its list of territories that should be decolonized. The vote follows a 2011 decision by French Polynesia’s executive branch to seek self-determination from France. French Polynesia’s legislature voted in late May for a referendum on independence, and recently elected pro-France president Gaston Flosse has asked French president François Hollande to hold a plebiscite. French Polynesia was taken off the UN decolonization list by France in 1947.
Fiji hosts Group of 77 meeting. Fiji hosted officials from 15 members of the Group of 77 (G-77) on May 7–8 for discussions on enhancing south-south cooperation in areas like women’s welfare, food security, and sustainable development. The G-77 is a loose affiliation of developing nations that advises the UN General Assembly. Fiji’s prime minister, Commodore Voreqe Bainimarama, assumed chairmanship of the group on January 16. Recommendations from the meeting in Fiji will be announced at a G-77 Foreign Ministers Meeting in New York in September.
Papua New Guinea repeals sorcery act, reinstates death penalty. Papua New Guinea’s National Parliament voted to repeal the country’s Sorcery Act on May 28 in the face of growing international condemnation. The Sorcery Act has been blamed for enabling violent crimes against women, including a series of recent public killings. The parliament simultaneously reinstated the death penalty as a potential punishment for rape, robbery, and murder in order to combat Papua New Guinea’s high level of violent crime.
ExxonMobil set to expand operations in Papua New Guinea. U.S. oil giant ExxonMobil entered negotiations with Canada’s InterOil on May 24 to establish an offshore gas project in Papua New Guinea. The potential deal, which could produce 7.6 million tons of natural gas per year, would be a major boon for the government of Papua New Guinea, which hopes to place the proceeds from natural gas sales into a sovereign wealth fund. Expansion of hydrocarbon activity would be a promising sign for the developing country, given previous difficulties in setting up ventures like the Esso Highlands gas project.
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Center for a New American Security's annual conference. The Center for a New American Security will host its annual conference on June 12. The conference focuses on national security issues facing the United States. Participants on a series of panels will speak on a range of security topics, including “The Future Rebalancing to Asia: A Conversation with Former State Department and National Security Council Asia Hands.” The conference will take place from 8:30 a.m. to 5:30 p.m. at the Willard InterContinental Hotel, 1401 Pennsylvania Ave., NW. More information is available here.
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