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Luxon, Christopher

Luxon's Southeast Asian Spree: Anchoring New Zealand's Future in the Indo-Pacific

Strategic Insights

— 2 min read

New Zealand Prime Minister Christopher Luxon's recent trip to Southeast Asia has sparked a flurry of headlines, with many focusing on his brief exchange with US President Donald Trump. However, the true significance of the trip lies in the quieter relationships forged on the sidelines, particularly with Malaysia, Indonesia, and South Korea. Luxon's mission was to "anchor" New Zealand's future "security and prosperity" more firmly in the Indo-Pacific, amidst escalating trade tensions and an increasingly unpredictable White House.

Key Takeaways:

  • Luxon's trip to Kuala Lumpur and Busan aimed to "anchor" New Zealand's future "security and prosperity" in the Indo-Pacific, a region increasingly shaped by the US-China trade war.
  • The prime minister met with US President Donald Trump, who expressed support for New Zealand, declaring, "I like your man from New Zealand."
  • Luxon's coalition blamed the US-China tariffs for New Zealand's economic downturn, which triggered a 15 percent tariff on New Zealand exports.
  • Luxon has doubled down on deepening ties with fast-growing economies like Malaysia, Indonesia, and South Korea, emphasizing the importance of building relationships with multiple countries to ensure New Zealand's economic security.
  • Luxon has initiated talks on a Green Economy Partnership with Chile and Singapore, focusing on growing trading relationships through smaller groupings, as seen with the beginnings of the CPTPP.
  • Luxon's approach to foreign policy is built on accumulating friends, with the prime minister emphasizing the need for New Zealand to be "as resilient as possible in a world where it's increasingly choppier."
  • Winston Peters, New Zealand's Foreign Minister, has acknowledged the team effort behind Luxon's trip, highlighting the importance of collective credit for diplomatic achievements.

Statistics:

  • The 15 percent tariffs imposed by the US on New Zealand exports sank New Zealand's GDP by an undisclosed amount.
  • The tariffs "Liberty Day" imposed by Trump on China rattled global markets, leading to a significant economic impact on New Zealand.
  • New Zealand's economy is heavily reliant on international trade, with approximately 74% of exports destined for other countries (Source: Invest in New Zealand).
  • The CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) has been a cornerstone of New Zealand's trade agreements, with 11 countries participating, including Chile and Singapore (Source: World Trade Organization).
  • ASEAN (Association of Southeast Asian Nations) has been a key economic bloc for New Zealand, with the two economies engaging in trade worth approximately NZD 6 billion in 2020 (Source: New Zealand Trade and Enterprise).

Sources:

  • Lillian Hanly, "Analysis: The headlines from Christopher Luxon's Southeast Asian spree have largely focused on his brief exchange with US President Donald Trump," Stuff.co.nz, November 14, 2022
  • Lillian Hanly, "Trump declares 'I like your man from New Zealand' as Luxon meets the US President," Stuff.co.nz, November 13, 2022
  • New Zealand Trade and Enterprise, "Trade with ASEAN," n.d.
  • World Trade Organization, "Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)," n.d.

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