Stephen Jacobi: Relationship with Japan remains critical to NZ success

Stephen Jacobi. Photo / Supplied

Opinion

The Asian region has never exactly been a calm pond.

Security challenges and a burgeoning population guarantee a degree of instability and risk.

But economically the region has continued to perform, even amid the recent crisis, and has underpinned New Zealand's own economic performance.

China's growth has been the decisive factor. In 2008, when the world was entering economic turmoil, China still enjoyed 8 per cent growth in GDP and is snapping at Japan's heels to become the world's second largest economy.

Add to the mix India (the 12th largest economy in the world) and South Korea and Indonesia (both within the top 20) and there is a genuine tussle for economic leadership taking place across Asia.

Focusing New Zealand's export and relationship building efforts on these attractive, dynamic economies makes sense.

Our efforts have paid off with Free Trade Agreements (FTAs) with China and Asean, including Malaysia signed in Kuala Lumpur this week, allowing New Zealand to become more integrated in the region.

At the same time it is important for New Zealand's continued success that we remain focused on one of our oldest and most significant Asian trading partners, Japan.

Although China's rise to second largest economy in the world is imminent, that place is presently held by Japan.

Japan is New Zealand's third largest export market after Australia and the United States and we enjoy a long-standing relationship (New Zealand and Japan signed a Treaty of Commerce more than 50 years ago) based on mutual benefit, shared values and strong links built up through contacts between business, tourists, educational exchanges and sister-city relationships.

New Zealand's interest in the relationship will be demonstrated by events taking place in Tokyo over the next week.

More than 100 government and business leaders from both countries will meet at the second Japan New Zealand Partnership Forum on October 30 with the aim of fostering a stronger economic partnership.

Other events include the 36th annual meeting of the Japan New Zealand Business Council, the location of Tourism New Zealand's giant rugby ball at Tokyo Tower and the Bledisloe Cup match at Tokyo Stadium on Saturday.

When it comes to freer trade, New Zealand has made only limited progress with Japan.

With the Democratic Party of Japan promising a rethink of economic policy and interested in developing a new East Asian community, the forum provides an opportunity to meet with and build relationships with Japanese business leaders and political decision makers, and place New Zealand in the best possible position to reap future benefits.

* Stephen Jacobi is executive director of the New Zealand International Business Forum.