Strengthening ties with our closest neighbour, New Zealand, is more than diplomacy – it’s critical for Australia’s strategic, economic, and social wellbeing.

Forging closer ties with New Zealand is in Australia’s best interests for several strategic, economic, and social reasons. The two nations share one of the closest bilateral relationships in the world – and deepening that connection offers tangible benefits.

On the back of Anthony Albanese’s visit to China last month, was a whistlestop trip and long overdue visit to our closest trading partner and defence ally, New Zealand.

Anthony Albanese wrapped a “successful visit” to New Zealand by joining Kiwi counterpart Christopher Luxon on a helicopter jaunt over the country’s Southern Alps.

But even in the chilly tranquillity of New Zealand’s snow-capped peaks, neither leader could escape the shadow of wars raging on multiple continents and conflict looming closer to home.

It was against this backdrop that Mr Albanese on Sunday stressed that Canberra and Wellington were in lock-step.

“When Australians think of New Zealand, we think of the Anzacs and we think of the sacrifice that we’ve made together in defence of our freedom,” he told reporters in Arrowtown, a historic mining town northwest of Queenstown.

“Australia and New Zealand are great friends – we think alike and we act alike on the international stage.

“And this visit here has been one of warmth, of engagement, of practical moves forward, including the meeting that we had yesterday afternoon with leaders in the business community of both Australia and New Zealand, talking about how we can expand that seamless economy, making sure that we can boost productivity to the benefit of both of our economies.

“So, it’s been a very successful visit.”

A day earlier, he and Mr Luxon released a statement outlining 41 shared commitments.

They ranged from deeper trans-Tasman economic ties amid “global economic uncertainty” to mutual defence aimed at “protecting and advancing our shared interests in our region”

Priority areas for Australia and New Zealand to work together were identified in the Relationship Roadmap to 2035 agreed in 2023 and reconfirmed in 2024.

These shared priorities span economics, security, mobility, and culture, each reinforcing the other, but unless acted on decisively, both countries risk falling behind.

Here are some key reasons why closer ties is a win-win for both nations:

 

Economic Benefits

Trade and Integration: The Closer Economic Relations (CER) free trade agreement is already one of the most comprehensive bilateral free trade agreements globally. Building on it can further streamline labour mobility, mutual recognition of standards, and digital economy integration.

New Zealand is already one of Australia’s top trading partners. In 2024, two-way trade was valued at over $32 billion, with significant movement of goods, services, and capital.

Cross Tasman bilateral investment has been steadily increasing, particularly within the freight and logistics infrastructure and services sector. Successful businesses within Australia are realising their expansion strategies by making the natural progression to New Zealand. Strengthening ties encourages smoother cross-border business operations, making businesses more competitive and creating a larger, more integrated regional economy.

But without faster alignment of digital and regulatory frameworks, those gains risk stalling.

 

Security and Defence

Regional Stability:  Australia and New Zealand are natural partners in maintaining stability in the Indo-Pacific region. Stronger bilateral ties amplify their collective voice on the world stage and enhance their ability to influence regional and global issues, making their partnership a powerful force for stability and cooperation.

ANZAC Defence Ties: The Australia-New Zealand alliance is rooted in shared history (e.g., ANZAC). Both nations have a history of fighting alongside each other in global conflicts. Enhanced defence collaboration-joint training, intelligence sharing, cybersecurity-bolsters both nations’ resilience to modern threats.

Five Eyes Partnership: Both are members of the Five Eyes intelligence alliance. A closer bilateral focus strengthens operational trust and regional security coverage.

Yet none of these can be taken for granted. Influence shrinks if Canberra and Wellington act separately, and complacency in coordination would leave both nations exposed.

Both leaders confirmed they had discussed China and security in the Indo-Pacific, while also noting they had both recently visited China – a significant trading partner to both nations.

They also made sure to emphasise their commitment to the Pacific family and its security. Australia and New Zealand are often seen as joint leaders in the Pacific. Working together more closely allows for better development aid coordination, disaster response, and climate change adaptation programs.

On the home front, both leaders signalled a desire to deepen defence ties, with Mr Luxon saying he wanted Australia and New Zealand’s militaries to operate as one Anzac force.

 

Workforce Mobility and Skills Exchange

Trans-Tasman Travel Arrangement: Citizens can live and work freely in each other’s country. This helps both nations address labour shortages (e.g., in health, construction, education) and attract global talent through a unified, mobile workforce.

Shared Standards & Qualifications: Enhanced mutual recognition of professional qualifications can create a more agile, competitive regional economy.

Yet mismatches and delays in recognition still frustrate employers. Unless these gaps close, the promise of a truly mobile workforce risks being wasted.

 

Cultural and Social Ties

Shared Values: Both countries are part of the Anglosphere and share a colonial history, leading to similar values and governance structures, which fosters a strong foundation for cooperation.

People-to-People Links: Over 670,000 New Zealanders live in Australia and more than 70,000 Australians live in New Zealand. Deep cultural affinities, sporting ties, and shared values make cooperation natural and beneficial.

Indigenous Collaboration: Both nations have rich Indigenous cultures. Closer ties support shared learning on policy, cultural preservation, and reconciliation efforts.

These ties are often assumed to be secure, but without investment, they risk becoming symbolic rather than strategic.

 

Climate and Sustainability Goals

Common Environmental Challenges: Australia and New Zealand face similar climate risks. Joint approaches to emissions reduction, renewable energy development, and environmental protection strengthen their voice in global climate forums.

But action is urgent. Fragmented approaches drive up costs and weaken regional influence in the global transition.

 

Forging closer ties with New Zealand strengthens Australia’s economy, enhances regional security, supports social cohesion, and boosts influence in the Indo-Pacific. As two like-minded, democratic nations with deeply entwined interests, closer collaboration isn’t just advantageous – it’s a strategic imperative.

For the supply chain and logistics sector, these same dynamics apply. SCLAA recognises that our own growth depends on building stronger trans-Tasman links. That’s why we are proud to announce our launch event in New Zealand, backed by Partners with established cross-Tasman interests.

For more information and to register HERE

I very much look forward to seeing you there!

 

Sue Tomic

SCLAA Chair  |  Board Advisor – Institute of Transport & Logistics Studies, University of Sydney Business School

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