New Zealand’s Top Trading Partners 2023
by Flagpictures.orgAn island nation in the southwestern Pacific Ocean located to the southeast of Australia, New Zealand exported US$39.8 billion worth of goods around the globe in 2023.That dollar amount reflects a 4.2% upturn compared to $38.2 billion five years prior during 2019.Year over year, the value of products exported from New Zealand fell by -9.5% from $44 billion in 2022.The top 5 countries in terms of buying exported goods from New Zealand are mainland China, United States of America, Australia, Japan and South Korea. That cohort of major customers consumed just over three-fifths (61%) of New Zealand’s world exports for 2023.Applying a continental perspective, nearly three-fifths (58%) of New Zealand’s exports by value was delivered to Asian countries while 14.6% was sold to importers in North America. New Zealand shipped another 14.2% worth of goods to buyers in Oceania led by Australia and Fiji.Smaller percentages went to Europe (8.7%), Africa (3%), then Latin America (1.4%) excluding Mexico but including the Caribbean.Below is a list showcasing 25 of New Zealand’s top trade partners, countries that imported the most shipments by dollar value from New Zealand during 2023. Also shown is each trade partner’s percentage of total New Zealand exports.mainland China: US$11 billion (27.7% of New Zealand’s total exports)United States: $4.9 billion (12.3%)Australia: $4.8 billion (12%)Japan: $2.2 billion (5.6%)South Korea: $1.4 billion (3.4%)Indonesia: $973.6 million (2.4%)Singapore: $928.7 million (2.3%)Taiwan: $925.7 million (2.3%)United Kingdom: $814.3 million (2%)Malaysia: $764.9 million (1.9%)Thailand: $752.2 million (1.9%)Saudi Arabia: $629.8 million (1.6%)Netherlands: $615.7 million (1.5%)Algeria: $600.5 million (1.5%)Vietnam: $573 million (1.4%)Canada: $561.4 million (1.4%)Hong Kong: $549.3 million (1.4%)United Arab Emirates: $532.9 million (1.3%)Philippines: $436.8 million (1.1%)Germany: $396.5 million (1%)Bangladesh: $326.2 million (0.8%)Mexico: $323.9 million (0.8%)France: $294.2 million (0.7%)Fiji: $278 million (0.7%)India: $261.4 million (0.7%)Nine-tenths (90%) of New Zealand’s exports in 2023 was delivered to the above 25 trade partners.From 2022 to 2023, the leading gainers for buying exported goods from New Zealand were customers in Algeria (up 14.6%), Canada (up 4.9%), Saudi Arabia (up 4.5%) then Fiji (up 4.2%).The severest declines year over year belonged to importers in Indonesia (down -26.2% from 2022), Germany (down -25.8%), Philippines (down -24.6%), South Korea (down -16.5%) and Japan (down -14.8%).Countries Causing the Greatest Trade Deficits for New ZealandNew Zealand generated an overall -US$10.1 billion trade deficit for 2023, down from -$10.7 billion in red ink during 2022.As defined by Investopedia, a country whose total value of all imported goods is higher than its value of all exports is said to have a negative trade balance or deficit.It would be unrealistic for any exporting nation to expect across-the-board positive trade balances with all its importing partners. Similarly, that export country doesn’t necessarily post a negative trade balance with each individual partner with which it exchanges exports and imports.New Zealand incurred the highest trade deficits with the following countries.South Korea: -US$1.8 billion (country-specific trade deficit in 2023)Germany: -$1.7 billionSingapore: -$1.6 billionThailand: -$1.3 billionAustralia: -$1.1 billionItaly: -$980.5 millionMalaysia: -$810.7 millionJapan: -$709.3 millionFrance: -$656 millionIndia: -$502.1 millionAmong New Zealand’s trading partners that cause the greatest negative trade balances, New Zealand’s deficits with Malaysia (up 51.8%), Japan (up 50.7%) and the United Kingdom (up 36%) grew at the fastest pace from 2022 to 2023.These cashflow deficiencies clearly indicate New Zealand’s competitive disadvantages with the above countries, but also represent key opportunities for New Zealand to develop country-specific strategies to strengthen its overall position in international trade.Countries Generating the Biggest Trade Surpluses for New ZealandBased on Investopedia’s definition of net importer, a country whose total value of all imported goods is lower than its value of all exports is said to have a positive trade balance or surplus.In 2023, New Zealand earned the highest trade surpluses at the expense of the following countries.mainland China: US$677.8 million (country-specific trade surplus in 2023)Algeria: $600.4 millionHong Kong: $490.7 millionSaudi Arabia: $488.3 millionUnited Arab Emirates: $438.2 millionPhilippines: $326.9 millionTaiwan: $296.1 millionFiji: $228 millionIndonesia: $208.8 millionSri Lanka: $184.9 millionAmong New Zealand’s trading partners that generate the greatest positive trade balances, New Zealand’s surpluses with mainland China (up 2,607%), Taiwan (up 383%) and Sri Lanka (up 77.2%) grew at the fastest pace from 2022 to 2023.In addition, New Zealand reversed its -$107.5 million deficit trading with the United Arab Emirates in 2022 to post the almost half billion-dollar trade surplus listed above for 2023.These positive cashflow streams clearly indicate New Zealand’s competitive advantages with the above countries, but also represent key opportunities for New Zealand to develop country-specific strategies to optimize its overall position in international trade.Companies Servicing New Zealand’s Trade PartnersNot one New Zealand-based corporation ranks among the Forbes Global 2000.The NZX50 Index is the main stock market index for New Zealand. Based on that index, the following companies are among leading stock companies in New Zealand that have the highest capitalization values.Australia and New Zealand Banking Group (financial services)Coats Group PLC (sewing supplies, zippers, fasteners)Kathmandu Holdings Limited (outdoor clothing, equipment)Mainfreight Limited (logistics, transportation)Nuplex Industries Limited (resins for decorative/industrial/protective coatings)Steel & Tube Holdings Limited (building materials)The a2 Milk Company Limited (dairy products) See also New Zealand’s Top 10 Exports and New Zealand’s Top 10 ImportsResearch Sources:Central Intelligence Agency, The World FactbookCountry Profiles. Accessed on April 14, 2024International Trade Centre, Trade Map. Accessed on April 14, 2024
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