New Zealand’s Foreign Minister Is Hopeful as He Travels to Washington for Tariff Discussions
Winston Peters remains unfazed by the Trump administration’s decision not to exempt Australia from tariffs, stating his determination to highlight New Zealand’s importance to the US.
New Zealand’s Deputy Prime Minister and Foreign Minister, Winston Peters, is approaching his upcoming meeting with US Secretary of State Marco Rubio in Washington with a positive outlook, focusing on strengthening ties between the two nations.
The looming introduction of broad import tariffs by President Donald Trump is expected to be a central topic of discussion during the meeting.
Peters plans to take a cautious approach, underscoring New Zealand’s value to the United States.
When asked about the possibility of New Zealand securing an exemption from tariffs similar to Australia, a key defense partner for the US, Peters responded that it is something they aim to explore through dialogue.
New Zealand has a lot at stake in these negotiations, as the US has become its second-largest trading partner after China, with exports exceeding $9 billion for the first time last year. New Zealand currently ranks 50th in terms of trading partners with the US.
The US accounts for 12 percent of New Zealand’s total exports.
Cautious Approach
Peters intends to ensure that the US recognizes “how crucial New Zealand is to them and the Pacific region.”
While he refrained from disclosing specific details, he emphasized the importance of first communicating their message directly to the US before revealing it to the public.
He stressed the need to present New Zealand’s case and listen to the US’s perspective during the discussions.
Regarding a potential meeting with President Trump, Peters chose not to confirm anything, preferring to manage expectations by focusing on what actually transpires during his visit.
Various international issues will be on the agenda during Peters’ visit, and he is set to meet with officials from the United Nations as well.
Peters departed New Zealand on March 13 and is scheduled to return on March 21.
New Zealand-US Trade
In the year leading up to March, New Zealand exported $14.6 billion (US$8.37 billion) worth of goods and services to the US, while importing $11.4 billion, resulting in a trade surplus in favor of New Zealand amounting to NZ$3.5 billion.
Peters highlighted that until 2024, New Zealand’s trade balance with the US was relatively stable, emphasizing New Zealand’s commitment to free trade since the mid-80s.
He acknowledged the existing tariffs on aluminum and steel exports and expressed the need to explore opportunities for enhancing trade relations through the ongoing discussions.
Although the trade gap showed signs of widening post-2019, services emerged as the primary driver, with the US being New Zealand’s top export market in this sector.
New Zealand’s exports to the US predominantly consist of meat and dairy products, with wine being a significant export as well.
The aerospace sector plays a vital role in US imports from New Zealand, particularly in mechanical machinery and aircraft parts.
The United States ranks as New Zealand’s third-largest source and destination for foreign direct investment, with significant investments in various sectors.
