Australia, New Zealand and Asia - shifting priorities
Asia:NZ’s director of policy and research, Dr Andrew Butcher, was recently on a track two visit to Australia, which included meetings with the Lowy Institute of International Policy, the Centre of International Security Studies at the University of Sydney and the Strategic and Defence Studies Centre at the Australian National University in Canberra. Below is a brief overview of current topics in Australian and New Zealand foreign policy in relation to the Asia-Pacific region.
“Two countries divided by a common language” was how one New Zealander living in Australia described the differences between the two countries. And even though they occupy the same neighbourhood, Australia and New Zealand retain distinct and at times divergent identities and policies. For example, New Zealand proportionally has a larger Asian population than Australia. And yet, in the last week Australian Prime Minister Rudd announced a major investment in raising Asian awareness amongst Australian students. In another initiative, Australian businesses have created a business alliance for Asian literacy.
The differences in foreign policy are clearer still. Australia has aspirations to be a “middle power” in the Asia-Pacific, while New Zealand’s aspirations are far more modest by comparison. Australian politicians are currently navigating the difficult terrain of Chinese investment in its infrastructure and natural resources, while New Zealand is beginning down the path of implementing the first Free Trade Agreement between China and a developed nation. Australia remains part of ANZUS, which New Zealand famously left in the 1980s. Australia also sent troops to Iraq, whereas New Zealand only sent troops to Afghanistan.
But while there are differences, there are also strong similarities. The ANZAC spirit, while forged at Gallipoli, also fought in Korea, Vietnam, Malaya and against the Japanese in the Pacific and elsewhere. Australia and New Zealand’s historic connection with Asia has been through warfare. Australia and New Zealand’s future connection with Asia will be through commerce.
And what of the ‘Asia’ we see from our place in the South of the South Pacific? While traditionally both Australia and New Zealand have set their focus on Southeast Asia, their geographically closest Asian neighbours, some suggest that the centre of ‘Asia’ is shifting North, to Japan, China and the Koreas. What happens in North Asia will have implications for what happens in Southeast Asia: alliances shaped or broken, trade increased or shifted, policies of engagement or containment – these will all have spill-over effects for Australian and New Zealand foreign and defence policies.
And the proverbial elephant in the room is not China – whose economic growth will invariably grant it strategic power – but the United States. Felled by the global financial crisis, America’s presence in the region, forged particularly in the aftermath of World War Two, is going to change. In the next forty years, the US will no longer be the preeminent superpower in the region. It will be joined by China, India, possibly Japan and maybe Russia. A table for one may either become a table of equals or a table of competitors. And all of this has implications for our part of the world.
The foreign policies of the last forty years will not work for the next forty years. The Asian region is changing – politically, economically and strategically. And Asia is changing Australia and New Zealand domestically as well. Whether we move together or apart, both Australia and New Zealand will face the same challenges and opportunities that these changes will present. And for both countries, our future lies with Asia.

