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New Zealand: serious about Asia

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After a day of intense discussion about New Zealand's relations with Asia, it is clear that the country's size is both a curse and a blessing. The curse is easy to see: New Zealand is so small that it is hard to get the attention of other governments. It is responsible for 0.22 per cent of world trade. There are more Indonesian civil servants than New Zealanders. Seoul's police force is bigger than the country's military.

But while Asia does not much notice New Zealand, New Zealanders are acutely aware of Asia's importance to them and their future. Exports to Asia are 1.5 times those to the Americas and twice the size of exports to Europe. The region gets 20 per cent of New Zealand's investment. One-third of tourism revenue comes from Asian visitors; 80 per cent of international education revenue flows from the 50,000 Asian students in the country. One in every 15 New Zealanders is of Asian descent.

Prime Minister Helen Clark says New Zealand 'recognises the importance of Asia to our prosperity and security'. The business and political elite know that geographically they have a real advantage: they are on the doorstep of the world's most dynamic region.

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Yet, they are worried, and with good reason: despite Asia's red-hot growth, some 5-6 per cent each year, New Zealand's exports to Asian markets, as a share of total exports, have been falling. After hitting a peak of 37 per cent in 2001, they fell to 35 per cent last year. 'Relations with Asia are not in crisis - far from it - but we are not maximising our potential,' said Ms Clark.

To remedy the situation, some 200 government, business, community leaders and a few outsiders last week examined New Zealand's prospects at the Seriously Asia forum. It first took shape a decade ago, when it was called Asia 2000, and was designed to chart the country's future relationship with Asia.

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Troubled by the country's seeming inability to capitalise on its advantages, Asia 2000 members decided they needed to do more to 'take Asia seriously'. Judging from last week's meeting, New Zealand takes Asia very seriously indeed.

Here, size makes a difference - in a good way. It is hard to imagine another country whose prime minister would attend the opening dinner and an entire day of discussions.

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