Australia-New Zealand Relations: Allies, Friends, Rivals

Australia and New Zealand have a bilateral relationship as close as can be between any two countries. A common market is being discussed and, for the most part, the countries allow free movement of goods, services, and labor between themselves, and the citizens of either country can live and work freely in the other. The defense relationship, though asymmetric in capacity, is almost as intimate. There is no discrimination between the countries in government procurement Industrial standards and professional qualifications are almost completely harmonized, and ministers and officials interact substantively and frequently on both domestic and foreign issues. Yet today s cooperative Australia-New Zealand relationship is relatively new. In the first half of the twentieth century, the two countries did not have a close relationship at all. Even as British colonies each dealt with Britain bilaterally rather than with each other or as part of a group of colonies. In the mid-nineteenth century New Zealand was governed for a period from New South Wales, which is now an Australian state. In 1901 when Australia federated, New Zealand was invited to become part of the new federation. However, New Zealand rejected the idea on the grounds that the benefits would be doubtful and the disadvantages significant. In the words of the Federation Commission New Zealand should not sacrifice her independence but should maintain it under the Political Constitution she at present enjoys . This assertion by New Zealand of the benefits of independence is still a factor in the bilateral relationship. During World War I the two countries formed the combined Australian and New Zealand Army Corps from which the term Anzac is derived. The term, which is used to describe the bilateral relationship, is still iconic and symbolic of the close relationship between the countries, even though the formal military relationship ended after World War I.