Together, Australia and NZ pull more weight globally; (right) Australian PM Malcolm Turnbull.Picture / Brett Phibbs
Together, Australia and NZ pull more weight globally; (right) Australian PM Malcolm Turnbull.Picture / Brett Phibbs
Opinion
Malcolm Turnbull's visit to New Zealand this week - his first overseas visit as Australia's Prime Minister - reflects that the transtasman relationship matters to both countries.
While much focus this past week has been on the detention and deportation of New Zealanders by Australia, it's worth bearing in mind the relationship represents $24 billion of economic value and our most important political, economic, cultural and social relationship.
Much has already been achieved in terms of economic integration between the two countries - gains from the unfinished pieces may not yield the big wins we are looking for. An exception to this is the mutual recognition of imputation credits which has the potential to significantly lift transtasman investment.
Two years ago we celebrated the 30th anniversary of Closer Economic Relations as the foundation of the transtasman economy. What began as a trade agreement has developed over time into a framework for our entire economic relationship.
Both governments are committed to finishing the single economic market and are negotiating free trade agreements with essentially the same partners.
There is a bigger trade picture that we cannot forget. Significant export opportunities exist beyond both our borders, especially in Asia.
Australian PM Malcolm Turnbull. Photo / Brett Phibbs
Sometimes we will want to collaborate and other times to compete, but both countries have a shared interest in the emerging architecture for trade and investment in the region, in which the Trans-Pacific Partnership (TPP) will be a significant driving force. TPP has the potential to deepen New Zealand's economic relationships across the Asia Pacific region, similar to what CER achieved for us with Australia. Indeed, much of the thinking behind the move to enhance regulatory co-operation in TPP comes from CER.
Earlier this year, both sides of the Tasman came together for the annual Australia New Zealand Leadership Forum. It was a chance to look ahead to the forces shaping the bilateral relationship in years to come.
A business-led initiative, the forum brings together leaders on both sides from government, business and the community to determine and advocate for what we need for both countries to prosper in a global economy.
Three over-arching themes stood out.
First, there was considerable emphasis on global connectedness - with each other and the world.
There is more that can be done to enhance the flows of goods, services, capital and people. Sectoral leadership is important here. We are encouraging sector leaders in both countries to start a strategic conversation about how we can collaborate to compete globally.
A second major theme was the extent to which both countries should co-operate to address major challenges.
Tourism, technology and science are areas ripe for future collaboration - by working together we can make the most of our respective strengths.
The third theme was the need for business to take the lead in articulating a path forward. Both countries need to increase inward and outward investment but addressing this requires political leadership, continuing regulatory reform and engagement from business in the public debate to explain the benefits.
Another example is infrastructure - both countries have ambitious plans to realise in the coming years.
We welcome the commitment of the two governments to expand and develop the transtasman procurement market and the infrastructure partnerships developing between organisations on both sides of the Tasman.
John Key's discussions with Malcolm Turnbull will not be all plain-sailing - it is inevitable that our countries will have policy and political disagreements from time to time.
That said, we should not shy away from any transtasman topic because of its difficulty. Rather, we must focus on and work through them as close friends and partners.
Adrian Littlewood is chief executive of Auckland Airport.
