New Zealand has established long-term import and export relationships with many countries around the world. However, her main trading partners are China, which accounts for 20% of its exports, Australia 18%, the EU 12%, the US 11% and Japan 6%. The country's economy is built on very developed free market trade and is the 53rd largest economy in the world.
Although her trade and economic interests are closely tied to Australia's due to the closer economic relationship agreement signed between the two countries in 1983, New Zealand's GDP is considered huge because of its population and land area. This means New Zealanders enjoy higher incomes and a better quality of life for the most part.
New Zealand's high GDP major imports and exports include:
Main import
Car
New Zealand no longer assembles passenger cars because tariff protections have been lifted and it has become cheaper to import already assembled cars. In the mid-1980s, car assembly was a huge industry in the country, with an annual assembly rate of nearly 100,000 vehicles. But when the country began to restructure the economy, the restrictions were lifted and people could import used cars from Japan.
The import of cars at the time made it possible to own a decent car despite the financial pressure on the economy. But even after stabilization, such imports continued to prosper in large numbers. Ford, Mazda, Honda and Toyota are some of the brands that still dominate the New Zealand new car market, but they don't sell as much. Even the new cars are sourced from markets such as Japan, Australia, Thailand, the US and the UK, shipped from overseas and distributed by New Zealand-based freight companies.
Crude
New Zealand is a huge consumer of crude oil and since its self-sufficiency in oil production is only 17% of what they need, they have to import 97% of the goods. Oil is a major part of New Zealand's economic operation, and although the country has some oil reserves, its production has been declining for years. They import oil from Malaysia, Australia, South Korea and Papua New Guinea, Saudi Arabia, Iraq, Nigeria, Russia and Indonesia.
Once crude is imported, New Zealand can refine and process it to meet most of the country's domestic needs.
Refined oil products
All petroleum products account for the largest proportion of New Zealand's imports, including refined petroleum products. The country imports refined oil from Japan, Australia, the United States, Germany and China. New Zealand's Marsden Point Crude Oil Refinery gets 70% of its refined oil from crude oil imported into the country. 30% of the deficit is imported, and some of their major refined oil imports include aviation lubricants and gasoline.
Mechanical equipment
New Zealand's machinery and machinery imports rose 9.7% in 2019. The main suppliers of these devices in the country are the US, EU and Australia. While Japan will traditionally supply a significant portion of these imports this year, the market's share has declined.
New Zealand's major machinery and equipment imports include vehicles, mechanical equipment, nuclear reactors, boilers, electrical equipment, and aircraft and spare parts. In fact, vehicle and machinery imports make up the two highest import bills in New Zealand.
Main export
Beef
New Zealand's beef and lamb export earnings hit a record $4 billion in 2019. Chinese demand for these products has put New Zealand in high demand for one of its key exports. Demand for New Zealand meat has persisted for decades due to best practices implemented in cattle rearing.
They are kept in a clean environment, veterinary visits are regularly scheduled, and the industry has welfare regulations that apply to these animals. The New Zealand Meat Industry Association ensures farmers adhere to these specifications to guarantee the best meat on the market. New Zealand's red meat industry was created by 14,000 commercial cattle, sheep and deer farms working with major companies to produce red meat.
Aluminum
Annually, New Zealand exports $23 million in aluminium to the US alone. Although the country is not yet among the world's aluminum exporters, its aluminum exports are worth more than $500 million annually globally.
The main destination for New Zealand aluminium is Japan, which accounts for 60% of export shipments each year. Now that New Zealand has been given the go-ahead to develop technology that will make New Zealand a world leader in low carbon aluminium, these exports face a bright future.
Wool
Wool has always been a traditional New Zealand export. In 1989, wool exports of New Zealand wool were worth $1.8 billion, up from $70 million in the early 1980s. Despite declining sales in the 1990s, the export of New Zealand wool has been reborn as technological and scientific advances have made it a sustainable industry again. The country has exported more than 100,000 tonnes of wool so far in 2019.
