New Zealand is aiming to double its exports to ASEAN and the broader Indo-Pacific region over the next decade, Prime Minister Christopher Luxon told Nikkei Asia on Tuesday in an exclusive interview.
Luxon said his government is committed to “doubling the value of exports in the next 10 years,” with a strong focus on bolstering trade ties with the 10-country Association of Southeast Asian Nations (ASEAN) and the wider Indo-Pacific region.
“Over 80% of our export [of] goods, and services come through or into the [Indo-Pacific] region,” Luxon said.
Luxon, 54, a former opposition leader and businessman, was sworn in as prime minister in November last year. He was in Malaysia for a three-day official visit to Southeast Asia’s third-largest economy, where he met with Prime Minister Anwar Ibrahim. The trip marked Luxon’s first visit to Malaysia as prime minister, and the first such visit by a New Zealand prime minister since John Key visited in 2015.
With Malaysia set to lead ASEAN next year, Luxon highlighted the significance of this period for New Zealand, which hopes to upgrade its relationship with ASEAN to a Comprehensive Strategic Partnership in conjunction with the 50th anniversary of New Zealand’s partnership with the Southeast Asian grouping.
He said there is a great opportunity to “reinforce the centrality of ASEAN” and to recognize ASEAN as a key decision-making vehicle affecting the Oceania region.
“It’s about that collective coming together to rise to particularly Southeast Asian challenges and opportunities, but also unique regional solutions as a whole,” Luxon added.
During his discussions with Anwar, Luxon emphasized the longstanding relationship between Malaysia and New Zealand, which has evolved over more than six decades. The two leaders agreed on the importance of enhancing trade, particularly in emerging sectors such as renewable energy and the green economy.
As of 2023, Malaysia was New Zealand’s second-largest trading partner within ASEAN, with bilateral trade reaching 11.56 billion ringgit ($2.54 billion). The two countries aim to raise this figure by 50% by 2030, supported by recent agreements to reduce trade barriers and enhance customs cooperation. Malaysia and New Zealand signed a free trade agreement in 2010.
New Zealand, already a leader in renewable energy with 87% of its electricity sourced from renewables, sees vast opportunities for collaboration as Malaysia and ASEAN move to a more sustainable energy system.
Luxon spoke about New Zealand’s “foreign policy reset,” emphasizing that this reset is centered on the Indo-Pacific region. He stressed that prosperity and economic growth are inextricably linked with peace, stability, and security.
“As the prime minister of New Zealand, I will act in New Zealand’s national interests, and that means incorporating both our economic and security interests,” he said.
New Zealand Prime Minister Christopher Luxon expressed his desire to deepen ties with ASEAN in an interview in Kuala Lumpur on Sept. 3. (Photo by Norman Goh)
Luxon also discussed the importance of multilateral trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP), and the Indo-Pacific Economic Framework (IPEF), as critical platforms for advancing New Zealand’s economic interests in the region.
He underscored the strategic significance of these agreements in facilitating trade and addressing contemporary economic challenges, reiterating New Zealand’s role as a steadfast advocate of free trade.
“We believe that New Zealand has benefited tremendously from the international rules-based system,” Luxon said, highlighting New Zealand’s active role in promoting high-standard agreements like the CPTPP.
He noted that the CPTPP is one of the most sophisticated trade agreements globally, covering not just traditional trade issues but also digital trade and data privacy, which are increasingly crucial to the modern economy.
Luxon also commented on the participation of major economies, such as China and South Korea, in these frameworks. While acknowledging China’s application to join CPTPP, he noted the stringent criteria for membership, known as the “Auckland principles,” which include a consistent track record of managing trade obligations and consensus among existing members.
Luxon expressed support for South Korea’s potential membership, but said, “Ultimately, it is about whether they can meet the established criteria.”
Reflecting on RCEP, Luxon reiterated New Zealand’s commitment to broadening trade relations within this extensive framework, which covers a diverse range of markets across Asia and Oceania. He noted that while RCEP provides broader coverage, CPTPP remains the leading-edge agreement in terms of depth and comprehensiveness.
When asked about the upcoming U.S. presidential election, Luxon did not endorse a candidate, emphasizing that the decision ultimately rests with the American people. U.S. voters will head to the polls in November to elect the next president in a contest between Vice President Kamala Harris and former President Donald Trump.
He said that he is committed to working constructively with whomever is elected. “Ultimately, that’s a decision for the American people to make.”
