Embargoed until 9.15 am
Tuesday 7 November 2006
Rt Hon Helen Clark
Prime Minister
Address at the
NZIIA Seminar ‘Beyond P4: The Outlook for Further Regional Integration in Asia-Pacific – A Latin American Perspective’
Auditorium, National Library
Wellington
9.15 am
Tuesday 7 November 2006
I am delighted to open this seminar organised by the New Zealand Institute for International Affairs, in co-operation
with the Latin America-New Zealand Business Council and the New Zealand Centre for Latin America Studies, to consider
the enhanced opportunities for co-operation between New Zealand and Latin America in the context of growing Asia-Pacific
regional integration.
I congratulate NZIIA for securing such an experienced line up of Latin American speakers to present views from the
region. I extend a special welcome to the four speakers who have made the long journey to be here today, and wish you
each a successful stay in New Zealand.
I acknowledge the personal participation of all five Latin American Ambassadors resident in Wellington. We value your
presence at this forum, and all the other contributions which you make to enhancing New Zealand’s relations with your
countries and region.
This is a timely forum, with the P4 Trans-Pacific Strategic Economic Partnership Agreement between New Zealand, Chile,
Singapore and Brunei due to come into full force tomorrow, thirty days after ratification by Chile; with a P4 leaders
gathering scheduled to be held in just over 10 days time during of the APEC Leaders’ Meeting in Ha Noi, to mark the full
coming into force of P4; and with the President of Chile, Michelle Bachelet, due to make a State Visit to New Zealand in
November.
Latin America Strategy
The forum is well timed also against the background of the review and renewal by Cabinet earlier this year of the Latin
America Strategy which has framed and guided New Zealand’s development of relations with Latin America successfully
since 2000. The Latin America Strategy focuses on the enhancement of political and foreign policy, trade and economic,
and people-to-people links with key countries in the region.
Topical and important as our relationship with Chile is - and it is New Zealand’s longest, closest, and most developed
in Latin America - we must also maintain clear sight of the importance and weight of the region’s other centres of
gravity, in particular the other five countries identified as focuses for New Zealand under the Latin America Strategy,
namely Argentina, Brazil, Mexico, Peru and - smaller but with a special quality - Uruguay.
A key objective from successful development of the more advanced relationship with Chile is to acquire and enhance New
Zealand knowledge and skills and approaches with wider application in the development of our relationships in Latin
America. Language and cultural skills are an obvious case. Accessing high quality regional academic and other research
networks is another.
New opportunities
The Latin America Strategy has set a new priority and approach towards Latin America for New Zealand during the last six
years. It is informed by a vision of new opportunities opened up for New Zealand and Latin America as a result of three
major positive developments in the potential of the relationship:
First, the increased value which modern New Zealand can offer Latin America as a partner in the Asia-Pacific;
Second, the enhanced trade and economic opportunities which Latin America can offer us; and
Third, the big advances in the practical feasibility of doing business together to realise our new potential.
Doing business together
The wider global communications revolution of the last decade has brought much faster, more reliable, plentiful, and
cheaper means of communication and transport within and between countries and regions, transforming our ability to
overcome physical distance.
For two parts of the world as geographically distant from each other as New Zealand and Latin America, the implications
have been profound. The development of the internet, the dramatic drop in international telecommunications costs, and
the expansion of air links have greatly facilitated our ability to explore and realise new connections – whether related
to business, education, tourism, working holidays, migration, or any other purpose. The process has been supported by
the rapid spread of English language ability among Latin Americans and – now growing rapidly, albeit from a small base –
Spanish language study by young New Zealanders. Portuguese also is attracting interest.
While pressure on availability of airline seats remains and the routes are relatively costly by some international
standards, in the last five years the frequency of direct air links between New Zealand and Latin America has more than
doubled, and Santiago has been added to Buenos Aires as a regional gateway. The prospects for continuation of this trend
appear hopeful.
Looking wider, between two regions as genuinely physically distant as Asia and Latin America - broadly one another’s
antipodes - the implications of the communications and transport revolution are even more profound. New Zealand,
positioned approximately half way between South America and East Asia - a roughly 12 hour direct flight from each –
should be a significant beneficiary of the enhanced two way interaction now building up.
New Zealand as an Asia-Pacific partner to Latin America
We believe New Zealand has strong value to offer Latin American countries as a partner in the Asia-Pacific. It of course
will be for Latin American countries to decide how relevant we are. In that regard we are pleased to have passed the
test with Chile in concluding P4. Chile is well known for its business acumen and strategic approach.
In the next stage of building on and beyond P4, it will be even more essential that New Zealand’s case is convincingly
articulated, well promoted and actively supported in Latin American centres. We need to ensure the most effective use of
our inevitably scarce resources to promote relations with a region as vast and varied and full of future opportunities
for New Zealand as Latin America. Our “NZ Inc” approach to Latin America was further developed in October when our
Ambassadors to the region, New Zealand Trade and Enterprise’s regional team, and senior managers from the Ministry of
Foreign Affairs and Trade, NZTE and the Ministry of Education met to chart the way ahead.
Some of the key messages New Zealand seeks to convey and reinforce through the promotion of political, trade and
economic, and people to people links with Latin American countries under the Latin American Strategy include the
following:
* New Zealand has strong credentials as a committed and forward looking participant in the Asia-Pacific regional
integration process:
We are a founding member of APEC; a CER partner with Australia; an FTA partner with Thailand, Singapore, Brunei, and
Chile; an FTA negotiating partner with China, ASEAN and Malaysia; a longstanding ASEAN dialogue partner; a member of the
East Asian Summit; a member of the Pacific Island Forum; and a responsible trade and economic partner of Pacific Island
countries.
* New Zealand’s vision is of open regionalism and of an inter-connected world where global linkages contribute to peace
and prosperity and sustainable development for all:
Asia is our largest trade and economic partner, but we also have vital trade and economic interests with North America
and Europe, and important interests with Latin America as well as the Middle East. We are committed by both interest and
conviction to promoting the most open, transparent, comprehensive, multilateral rules-based international trading system
possible.
* New Zealand sees Latin America as its neighbour across the Pacific and views Latin American participation in the
process of Asia-Pacific regional integration as natural and desirable: we are conscious at the same time that Latin
America is a large and varied region which looks to the Atlantic and the Caribbean as well as to the Pacific and is
engaged in its own important integration processes:
The opportunities represented by the Asia-Pacific naturally will differ in character and priority of interest for
different countries in Latin America; as well as engaging Chile, Mexico and Peru in APEC, New Zealand values the
opportunities presented by FEALAC - the Forum for East Asia Latin America Cooperation - for engagement with a wide range
of Latin American as well as East Asian countries aimed at building collective collaboration.
* New Zealand sees scope for increased future co-operation with Latin America underpinned by positive long term demand
prospects for our common products and reasonable prospects for structural reform in northern hemisphere agricultural
subsidy policies:
Due to similarities in natural resource endowment and international comparative advantage, in particular with the
Southern Cone countries, we have a strong affinity in terms of shared production technology interests and market access
concerns. For New Zealand, new co-operation with Latin America increasingly is likely to take the form of investment,
joint ventures, and technology participation throughout the region’s Food Value Chain, rather than involving big
increases in traditional commodity export. Education co-operation and exchanges and growth in tourism also hold strong
potential.
Latin American opportunities for New Zealand
Latin America also has become more accessible and interesting in new ways for New Zealand.
Electoral democracies exist in almost every Latin American country. 2006 has been a bumper election year in the region
with Chile, Costa Rica, Peru, Colombia, Mexico, Nicaragua, Ecuador, Brazil, and Venezuela all holding Presidential
elections. Healthy oppositions exist in most countries and the influence of the military in political life has faded.
Some challenges do remain in governance issues and in overcoming structural poverty and inequality. That leaves room
open for populism in some countries.
Overall we see the political trend as positive. In foreign policy terms, many countries of the region are closely like
minded with New Zealand on a considerable range of issues.
Thus the opportunities for New Zealand to enjoy healthy political relations and constructive foreign policy dialogue
with key countries in Latin America today are stronger than ever before.
Trade and economic opportunities are also evident. One of the key pillars of our Latin America Strategy is the effort to
enhance trade and economic links with the region, including through the P4 Trans-Pacific Strategic Economic Partnership
Agreement and the Joint Experts Group on the pursuit of a Closer Economic Partnership with Mexico, our largest trading
partner in the region. Another key interest is building up the broader economic relationships with Brazil, Argentina and
Uruguay which are increasingly destinations for New Zealand investment and joint ventures, including by Fonterra, the
major fisheries companies, and PGG Wrightson. Making the most of the opportunities presented by Peru’s hosting of APEC
in 2008 is also very much on our radar screen. New Zealand, through NZAID, is currently providing English language
training for a substantial group of Peruvian officials to assist Peru’s build up of capacity for running APEC year.
These objectives are reflected in the priorities of the Latin America Strategy approved by Cabinet in early 2006. They
include: implementing the new strategic partnership agreement with Chile; continuing to work for a closer economic
partnership agreement with Mexico; increased focus on economic and political relations with Brazil; support for New
Zealand’s growing investment interests in Argentina and Brazil; developing a strategy for enhanced education links with
the region; promoting the opportunities offered by the region to New Zealand young people and to business; and making
the most of Australia’s hosting of APEC in 2007 and, as I have noted, of Peru’s hosting of APEC in 2008 to increase
ministerial contacts.
Recent progress
The high level of activity this year has illustrated that useful progress has been made during 2006 in taking the
Strategy forward.
Senior political exchanges have included my visit to the Chile Presidential inauguration in March, and shortly we look
forward to receiving President Bachelet; visits by Conservation Minister Chris Carter to Argentina and Brazil in March;
visits by Jim Sutton as Minister of State to Argentina, Brazil and Chile in May with an agri-tech business delegation;
and visits to Argentina and Chile in July by the Minister of Agriculture and Fisheries, Jim Anderton. High level
exchanges in the other direction have included a visit by the Argentine Foreign Minister, Jorge Taiana, in August and a
visit by the Brazilian Minister of Agriculture Carlos Guedes Pinto in September.
In terms of foreign policy dialogue, formal Foreign Policy Consultations were held with Mexico in July, and with Brazil,
Argentina, Chile and Peru in respective capitals during October. A highlight in the other direction was a visit in
February by President Lula’s special international affairs adviser, Prof Marco Aurelio Garcia.
On the trade and economic front, besides the final coming into force of the P4 Agreement, a major achievement has been
the positive conclusions in the report of the Joint Experts Group of NZ and Mexican officials, academics, and business
people on the benefits of a Closer Economic Partnership between the two countries. Significant trade and economic
exchanges further to the Latin America Strategy during 2006 have included a visit to Mexico by a Crown Research
Institutes’ delegation in March; a P4 trade delegation visit to Chile in June organised by NZTE; and in July, a visit by
Marcos Jank, President of the Brazilian Institute for International Trade Negotiations.
New Zealand’s two way trade with Latin America totalled $1.3 billion in the year to June, up fourteen per cent over the
previous year.
Significant people to people developments have included continuing strong demand for Working Holiday visits to New
Zealand from Argentina and Chile with the quotas of 500 places fully taken up in each case, and growth also in demand
from Uruguay. Other exchanges have included a visit by the Director of Te Papa, Seddon Bennington to five regional
countries in July and a Regional Science and Technology Journalists’ delegation visit to New Zealand in March. I would
also like to make particular mention of visits by Prime Minister’s Fellows Peruvian Cecilia Blume and Mexican Adriana
Gonzalez in April and May respectively.
With the entry into force of the P4 Agreement for Chile tomorrow, it is useful to emphasise that both the New Zealand
and Chilean Governments have already put much effort this year into ensuring its success. Two New Zealand business
missions have visited Chile over the winter, and a large Chilean mission will be here later this month. Already there
have been follow up visits by New Zealand companies back to Chile. Visits focusing on the environment have been
exchanged, a joint study has been carried out on business opportunities, and the Chief Executive of New Zealand Trade
and Enterprise had talks with his Chilean counterparts on a future strategic partnership. A Chilean science and
technology delegation visited late last year. Very importantly, we have announced the appointment of an education
counsellor to our Embassy in Santiago during next year. The Te Papa visit was a first step towards fleshing out the
cultural chapter of the agreement. Active implemention of the agreement will continue to be a high priority for both
governments. This will be a central topic of discussion with President Bachelet during our forthcoming meetings both in
Na Hoi and Wellington.
Conclusion
The picture, then, is of the New Zealand Government devoting resources – intellectual and economic – in a strategic
manner to enhance our relationships with an increasingly important region.
We can see the potential in closer relationships with Latin America, economically and politically and by increasing
connections between members of our societies.
We aim to demonstrate to Latin countries that we can be a useful partner for them, not least as they consider expanding
their interests in the Asia-Pacific region.
Modern communications make it easier for us to do business together, notwithstanding the physical distance.
In sum, New Zealand is committed to working hard and creatively to further develop ties with Latin America. We are keen
to be a valued partner for Latin America in the Asia-Pacific.
ENDS