Key calls for closer economic ties

New Zealand Prime Minister John Key with Australian Prime Minister Julia Gillard at Parliament House in Canberra. Photo / NZPA/Mark Graham

Prime Minister John Key today lauded New Zealand's unique relationship with Australia and urged even closer economic ties to exploit untapped Asian markets when he made a ground-breaking address to the Australian Federal Parliament.

The first New Zealand prime minister invited to address the parliament, Mr Key said the upcoming 30th anniversary of Closer Economic Relations (CER) - in 2013 - illustrated how the trans-Tasman neighbours could work effectively together and that mutually beneficial co-operation must continue.

"We have a responsibility to keep up the momentum that has made CER such a success," said Mr Key, who was accorded a standing ovation when ending his 20-minute address.

"The question now is how can we take our relationship to the next level?" he asked, before answering: "Prime Minister (Julia) Gillard and I are both committed to progressing the Single Economic Market agenda."

CER, he said, provided a launching pad for regional integration and the signing of the Association of Southeast Asian Nations (Asean) Australia and New Zealand Free Trade Agreement in 2009 was further evidence of the harmonious relationship shared by the two countries.

"That was a ground-breaking and ambitious regional trade agreement that opened up significant opportunities for our economies."

As expected, Mr Key said he hoped a Trans-Pacific Partnership (TPP) trade deal would eventually be struck.

"Together we can drive to make this trade agreement as high-quality and comprehensive as possible," he said.

"Together we can ensure the TPP is the basis of a powerful integrated regional trading bloc linking Asia, Australasia and the Americas. The obvious next step is a deal extending across the full Apec membership," he said.

"As we join forces at the trade negotiating table, so too can we join forces to leverage these trade agreements for maximum benefits.

"Together we can work to penetrate untapped parts of the Asian market, introduce new industries to those markets and help our exporters scale-up their operations."

New Zealand was interested in how its joint objectives with Australia in these areas could find practical expression in the future.

On a positive note there was hope the TPP deal would be signed as early as November when leaders of the eight countries negotiating - Brunei, Chile, New Zealand, Singapore, Australia, Malaysia, Peru, the US and Vietnam - will be in Hawaii for Apec (Asia-Pacific Economic Cooperation).

Although his two-day trip was primarily symbolic - and overshadowed by Ms Gillard's alarming drop in popularity a year after she deposed Kevin Rudd - Mr Key also made the most of a rare opportunity to celebrate the "unbroken history of partnership" between two nations that forged a common bond of the shores of the Gallipoli peninsula in Turkey in 1915.

Mr Key said that Anzac spirit was never more evident than when Australian rescue personnel rushed to respond to the Pike River mining disaster on the West Coast which killed 29 men, and then Christchurch's devastating February 22 earthquake.

"When an explosion ripped through the Pike River Mine in November last year you sent your specialists, your machinery and our hope. You did all you could to help us bring those 29 men home.

"When the devastating Christchurch earthquake struck us in February you came to our aid immediately, unreservedly and with open hearts. Your deeds struck a deep chord with the people of Christchurch," he said.

"Today on behalf of all Kiwis, I thank you. Your acts were living testament to the perpetual Anzac spirit."

Toward the end of his speech Mr Key said New Zealand "feels lucky to have Australia as our neighbour.

"We enjoy our competitive rivalry but, when faced with challenge of opportunity, we could wish for no better partner."

Mr Key joined just seven other foreign leaders to address the parliament, including the former United States President George W Bush and former British Prime Minister Tony Blair.

Earlier Mr Key received a ceremonial welcome on the forecourt of Parliament House complete with a 19-gun salute - two less than the barrage reserved for visiting heads of state.

- NZPA