KEY POINTS:
LIMA - New Zealand's new prime minister John Key has met Australian counterpart Kevin Rudd for the first time since winning government, with both leaders pledging to continue the strong relationship between the trans-Tasman neighbours.
The pair met on Friday ahead of the start of the Asia Pacific Economic Cooperation (Apec) leaders' summit in Lima.
"It's going to be a good partnership between us," Mr Rudd told reporters.
"The thing about the Australia-New Zealand relationship is that it really does transcend the party political divide.
"The reason for that is that our peoples really do have so much in common. If you look around the world you can't find two peoples who have more in common than the people of Australia and the people of New Zealand.
"Our interests coincide practically everywhere around the world."
Mr Rudd said the challenge now was to take the relationship to new heights.
Mr Key promised to work hard to ensure it was a good relationship between New Zealand and Australia.
"There's more work to be done," he said.
The pair planned to discuss the close economic relationship between the countries but Mr Key ruled out a short- to medium-term prospect of New Zealand adopting the Australian currency as part of a monetary union.
"At this stage, there's a lot of other things we can do to enhance a single economic market," Mr Key said.
Mr Rudd said currency union "was not on the table".
Earlier John Key told world leaders at the Apec Summit that the economic recession will have profound and widespread implications.
His address to delegates meeting in Lima, Peru, was his first official speech as New Zealand's Prime Minister.
Mr Key said changes have to be considered which are going to help countries deal with the global financial crisis.
He pushed for an open trade agenda and said that if there was not a successful conclusion to World Trade Organisation's Doha round, it would be nothing short of political failure.
"Reforming the global financial system will require a balancing act between, on the one hand, moving away from the largely unregulated environment of today and, on the other, ensuring we do not completely undermine financial markets.
"Let us not forget that global growth over the past couple of decades has bought hundreds of millions of people out of poverty.
"For global growth to continue the world needs financial markets to function and it needs liquidity. Furthermore, the world needs to trade and to interact."
Mr Key said he was heartened by the willingness of global leaders to act decisively and co-operatively to face the unprecedented challenges stemming from the financial crisis.
Before his speech US Secretary of State Condoleezza Rice contacted John Key, to wish him well.
John Key does not have any official contact scheduled with US delegates but Dr Rice indicated there may be an opportunity to meet with outgoing President George Bush.
Mr Bush's presence at the summit sparked a protest of about a thousand people in the capital Lima, who demanded that Mr Bush get out of the country.
Some of the protesters wore orange overalls representing inmates at the Guantanamo Bay prison camp where America houses terrorist suspects.
Scores of police in riot gear were on hand to make sure they did not get near the Apec summit venue.
There have been developments in America to appoint a replacement for Dr Rice.
Former US presidential candidate Hillary Clinton has accepted President-elect Barack Obama's offer of the top diplomatic job.
It is also expected former presidential candidate Bill Richardson will be offered the position of Commerce Secretary in the new administration.
- NZPZ, NEWSTALK ZB
