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New Zealand's Economy

Ties With Australia

How New Zealand and Australia share a close economic relationship through the 1983 Closer Economic Relations agreement, free movement of people and banks.

New Zealand and Australia are closely linked.

CER

The Closer Economic Relations agreement of 1983 created one of the world’s most complete free trade areas.

Free movement

The Trans-Tasman Travel Arrangement lets citizens live and work in each other’s country.

Brain drain

Many New Zealanders move to Australia for higher wages.

Banks

New Zealand’s largest banks are Australian-owned: ANZ, ASB (CBA), Westpac and BNZ (NAB).

Trade

Australia is a key market for New Zealand goods and services.

The move to Sydney

A young nurse from Auckland moves to Sydney, attracted by higher pay, without needing a visa.

Thinking the two economies are separate

They are deeply integrated.

Key takeaways
  • CER in 1983 created free trade.
  • Citizens can live and work in either country.
  • Many New Zealanders move to Australia.
  • Australian banks dominate.
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